ILWs
-
Increased ILW purchasing reflects cash-rich funds looking to protect return levels.
-
Typical ILW attachment points for US peak perils have fallen from $60bn to $40bn-$50bn as the market awaits the final Hurricane Ian number from PCS.
-
The investment firm said cat bond spreads that are elevated relative to historical levels continue to offer an attractive entry point for investors.
-
The deal was brokered by Gallagher Re and provides US cyber insurance event protection.
-
In its semi-annual report for the six months to 31 July 2023, the manager said the fund had returned 2.74% over the half-year.
-
The bond provides coverage for North America storms and earthquakes, as well as European windstorms.
-
The Swiss direct risk transfer platform will use the funds to help grow its team and develop products.
-
For larger top-end ILW triggers, cedants may have to be pragmatic on rolling over capital.
-
The 1 June renewal posed challenges for Florida insurers seeking reinsurance cover.
-
Rates have climbed 20%-35% since 1 January, and 40%-50% year on year, sources estimated.
-
Despite a move away from non-official indices, global ILW trading is still sometimes relying on a patchwork of triggers.
-
There is a lack of capacity for aggregate deals, and moves towards more named peril coverage.
-
The ILW-focused fund has continued expanding after generating 6.4% returns last year.
-
As the renewal is expected to spill over into 2022, the two-speed market will put pressure on retro-reliant carriers.
-
The listed mutual fund will be overseen by new recruit Niall MacGillivray.
-
One market participant said the strategy was $250mn in size, but it is not known how much business it has so far written.
-
The reporting agency for industry loss triggers has been expanding territories and natural peril coverage over time.
-
Sources told Trading Risk that a different kind of investor was interested in ILWs compared with retro cat bonds.
-
Richard Anson previously served as head of ceded reinsurance at Antares and reinsurance manager for Aviva.
-
There is little sign of retro demand returning after buyers cut back in January.
-
The worldwide aggregate ILW bond covers an unusually wide range of perils for the cat bond sector.
-
The former Bermuda Brokers and JLT Re broker says ILW appetite is expected to remain strong after benefitting from pandemic trading activity.
-
The transaction takes total private cat bond issuance tracked by Trading Risk to $461mn for the year, outstripping 2020 totals.
-
The Bermuda (re)insurance firm will pay a final spread on the deal of 675 basis points (bps).
-
The manager says cedant demand is growing for larger transactions.
-
The firm has seen interest in non-named storm covers after last year's derecho and other loss events.
-
The investment bank is focused on developing new parametric products for the reinsurance market.
-
US contracts are still pricing at a 10%-15% premium to January 2020 levels, but excess retro capacity may impact the smaller market.
-
Net assets have grown 5% year-on-year to $876mn as of 31 October 2020.
-
Target investments could include cat bonds and other reinsurance, though the allocation size is unknown.
-
The fund also grew its net assets by 15% to about $142mn.
-
The start-up will run three auctions on Tuesday ahead of Hurricane Sally reaching the US coast.
-
Total equity and debt raised this year if the $300mn target is reached would approach $1.5bn.
-
ILWs at the $10bn mark failed to clear, as auction participants suggested losses would not reach the trigger.
-
Buyers and sellers are eyeing a 20% RoL, but contracts have yet to trade.
-
Buyers are looking to protect against a mid-sized loss, although trades are not believed to have taken place yet.
-
The $3.9mn claim followed an August revision to the PCS Irma loss estimate.
-
The hedge fund has asked that a US court order Catco to apply a loss estimate from PCS, rather than an allegedly “inaccurate” one from Munich Re NatCat.
-
The climate and insurance entrepreneur is considering relaunching catastrophe exchange-traded products.
-
The Bermudian ILS manager closed some months ago.
-
Trading was brought forward this year and more cedants could head to bond market.
-
ILW volumes could grow by more than 25 percent in 2020 as reinsurers seek alternatives to indemnity retro cover, sources said.
-
The Markel co-CEO said the firm was warehousing retro risk until it raised capital for new platform Lodgepine.
-
The dispute centres on ILWs that used Munich Re loss estimates as their trigger.
-
The broker said Covid-19 industry claims should be manageable but the disaster makes a broader capacity squeeze more likely.
-
The marketplace said $87mn in capacity was offered in the past week's auction.
-
Tremor’s CEO said the “(re)insurance market must remain open for business” during this turbulent period.
-
-
Pricing on the ILW bond has dropped below the initial guidance range.
-
The average cat bond yield was 7.48 percent by year end as cat bond issuance picked up.
-
The reinsurer is thought to be buying the ILW protection for its own account, sources said.
-
Sources are expecting some $5bn-trigger second-event covers to pay out as a result of the Typhoon.
-
He will have a similar mandate at New York-based One William Street as he had at recently-sold hedge fund BlueMountain.
-
Reconstruction in the ILS market continues, with ongoing concerns about investor sentiment, capacity growth and the impact of retro rates
-
The lift in ILW pricing seen at mid-year has been unilateral across most products and was a further increase on the 2018 pricing correction following 2017 events, according to Aon.
-
Reinsurance conditions began moving in investors’ favour in mid-year 2019, marking a delayed reaction to 2017-2018 losses.
-
A day ago, cover that attached at $40bn was being offered at 15 percent rate on line.
-
Discussions are now being held around ILWs triggering at $30bn or $40bn.
-
The volcano cat bond is being structured so that will be open to investment from other ILS funds.
-
The fund manager has previously raised capital via Bermuda share issuances under prior owners.
-
Rising Jebi losses will contribute to a squeeze on capacity.
-
Nephila, historically one of the biggest buyers of industry loss warranties, has exited the market, sources have said.
-
At 31 January this year, the fund’s net assets reached $62.4mn, almost double the $34.2mn total assets at the same point last year.
-
New aggregate demand from Japanese cedants may also present opportunities for ILS markets.
-
The past two years challenged the catastrophe (re)insurance market more than any period since the Hurricane Katrina era in 2004-2005 – but it is far from clear what the outcome will be this time around.
-
A decrease in capacity following last year’s losses is thought to be one of the largest drivers of the rate increase.
-
Total assets have grown from $45.6mn at the end of July.
-
This publication retraces the series of loss predictions made by the manager for its listed Reinsurance Opportunities Fund over the past year.
-
The firm’s 2017 portfolio loss has risen 15.7 percent to 57.1 percent.
-
The ILS market is often presented as the player in the (re)insurance industry with the deepest pockets, with access to trillions of pension fund wealth in worldwide bank vaults.
-
The initial estimate suggests an ultimate outcome broadly in line with market expectations.
-
The industry loss warranty will trigger based on a specified number of users in a network experiencing network failure.
-
Hurricane Michael is likely to have triggered Floridian window industry loss warranties (ILWs), sources told Trading Risk. The window covers typically attach at ranges between $2bn-10bn and $7bn-15bn, covering Florida wind risks only.
-
Neuberger Berman has a diverse base of investors in areas Cartesian Re's ILS platform has not drawn from.
-
Former Marsh broker Richard Green has joined as regional head of the alternative risk transfer business.
-
Terms of the deal were not disclosed.
-
Appetite for last-minute cover appears muted ahead of Hurricane Michael’s landfall in Florida.
-
The two firms both have large offices on the island, which could create overlap.
-
City National Rochdale’s Select Strategies fund had posted a -3.90 percent loss at 31 January, driven by HIM.
-
The city of Osaka sustained most of the losses.
-
The National Hurricane Center predicted catastrophic freshwater flooding as the eye of the hurricane touched down at Wrightsville Beach.
-
Heise will identify insurance marketplace pain points to assist Akinova in realising its goal of launching an electronic trading platform for (re)insurance risk, the company said.
-
Many ILS entrepreneurs have already successfully cashed out.
-
C shareholders in the Catco Reinsurance Opportunities Fund, who are not exposed to the 2017 losses, saw a return of 6.31 percent for H1 2018 amid low catastrophic activity during the period.
-
The latest increase in PCS figures for hurricanes Harvey and Irma means that US wind aggregate industry loss warranties (ILWs) that trigger at $30bn have been hit, Trading Risk sources said.
-
ILS premiums steadied after a 9.5 percent drop in the first quarter, according to Lane Financial's benchmark.
-
The insurance merchant bank is planning to feed most of the fund’s capital into a quota share retrocession contract with Iris Re.
-
The fund raised an additional $10mn in the three months to 30 April 2018.
-
The fundraise comes as the firm is hiring to expand its ILS strategy.
-
London-based start-up Akinova is developing an electronic trading platform for (re)insurance risk and is planning to start with listing a version of an industry loss warranty (ILWs) called an “AELO” – an Akinova Event Linked Option.
-
The concept of reinsurance market “payback” – higher premiums that follow major losses – might well be dead.
-
Rate increases have mostly been limited to low attaching Floridian wind cover.
-
The latest PCS loss number for Hurricane Harvey has edged up to $17.1bn, from a prior figure of $15.7bn, sources told Trading Risk.
-
If ILS capital is designed to be the ultimate home for catastrophe risk, how far should asset managers look to hedge their investors' bets?
-
Hiscox Re has introduced the first ever cyber industry loss warranty to the ILS and reinsurance markets.
-
Sompo International has set up a $62mn sidecar, Blue Lotus Re, to provide cover supporting its global catastrophe reinsurance portfolio in 2018
-
The Catco Reinsurance Opportunities Fund made a worse-than-forecast 27.6 percent loss for investors in 2017 after its fund manager significantly added to its wildfire reserves in December.
-
The momentum for retro rate increases at the January renewals slowed at the end of last year, sources said, as lack of new demand and a smooth reload of lost capital meant increases fell short of expectations
-
The value of City National Rochdale's wind ILW investments decreased by 31.4 percent between the end of July and the end of October 2017, its latest quarterly filing showed.
-
A number of outsized third quarter losses at Lloyd's insurers has highlighted the London market's concentrated exposure to the 2017 hurricanes
-
This year marked the 25th anniversary of Hurricane Andrew, a storm that would cost reinsurers $56bn if it recurred today, according to modelling company AIR Worldwide
-
A number of ILS managers stand to benefit from so-called "window" industry loss warranty (ILW) covers, which means that their recoveries may rely on limited loss deterioration.
-
Retro market sources said that capacity shortages would not be a factor in the January renewals after ILS managers reloaded lost capital, but that uncertainty over underlying reinsurance repricing was contributing to a stand-off
-
Markel Catco has said it will raise gross proceeds of $543mn by issuing new shares in its London-listed Catco Reinsurance Opportunities Fund.
-
Guernsey-based start-up Brilliant Reinsurance is aiming to provide retro cover to the Lloyd's market.
-
The managers of start-up ILS fund Lutece Re said they had raised a "significant amount" of committed capital to begin underwriting at the 1 January renewals
-
The reinsurance industry will absorb 50 percent of some $90bn of Q3 catastrophe losses with the rest retained by the primary market, AM Best's chief rating officer Stefan Holzberger said at the rating agency's London market conference.
-
The 2017 catastrophe events have highlighted the extent to which ILS managers are benefiting from industry loss warranty (ILW) hedging, but market sources have questioned where the losses will ultimately fall as more clarity is gained over HIM claims in months to come.
-
Erik Manning's start-up ILS fund Lutèce Re has raised capital to begin underwriting retro business during the 1 January renewals, Trading Risk understands
-
Third quarter catastrophe losses represented a 7 to 14 percent hit to the shareholders' equity of global reinsurers, with major catastrophe writers such as Everest Re, Lloyd's of London, Lancashire and RenaissanceRe the most severely affected
-
A rating correction is widely expected in 2018 after reinsurers said they would push for increases in response to catastrophe losses that have highlighted their softer margins
-
Four of the listed Florida insurers have ceded more than $1.2bn of third quarter catastrophe claims to their reinsurers, based on estimates from their quarterly disclosures
-
The California wildfires have prompted write-downs to aggregate cat bonds covering USAA and Nationwide, although the former has revised down year-to-date catastrophe loss estimates that had suggested a payout under one of its Residential Re deals, Trading Risk understands
-
At this point there are a lot of questions being asked in the reinsurance markets and few definitive answers available. As it is a journalist's privilege to ask questions, let's go through some on the list
-
The 2017 catastrophe events have highlighted the extent to which ILS managers are benefiting from industry loss warranty (ILW) hedging, but market sources have questioned where the losses will ultimately fall as more clarity is gained over HIM claims in months to come
-
Collateralised reinsurance fund strategies took losses of 10-20 percent in September, Trading Risk understands
-
Reinsurance pricing seems to rely on a certain amount of collective signalling in as much as it does number-crunching - as underwriters gauge how far they can push rates without losing business, by looking for fear in the eyes of their opposition
-
New York-listed Blue Capital Reinsurance Holdings has reported that it expects 14 percent of its projected 1 January 2018 shareholders' equity to be locked up as a result of third quarter catastrophes
-
Blue Capital Reinsurance Holdings has reported that it expects 14 percent of its projected 1 January 2018 shareholders' equity to be locked up as a result of Q3 catastrophes, on top of reported losses.
-
Hannover Re has ceded 47 percent of its 2017 natural catastrophe losses to its retrocession partners, the firm said in its third quarter report.
Most Recent
-
World Bank ‘just scratching surface’ of cat-bond market
25 April 2024 -
Insurance Insider ILS Awards shortlist confirmed
25 April 2024 -
Ariel Re, Hiscox Re ILS launch cyber-cat group
25 April 2024