Trading Risk April 2017

The first quarter of 2017 produced a record volume of ILS issuance for an opening quarter, as competitive pricing drew sponsors to the market

First quarter returns from a number of ILS funds investing in private reinsurance instruments have come in significantly below gains delivered in the same period last year, in what is likely a reflection of elevated catastrophe activity in Australia

Cincinnati Financial has forecast it will take pre-tax catastrophe claims of $106mn in its Q1 results, eroding a significant portion of the deductible on its Skyline Re private cat bond.

Reinsurers attempted to "hold the line" on pricing in the 1 April renewals, but carrier demand for business meant rate reductions continued to be on offer for buyers

Demand for crop reinsurance is falling rapidly, partly due to M&A in the underlying insurance business, sister publication The Insurance Insider reported

Demand for crop reinsurance is falling rapidly, partly due to M&A in the underlying insurance business, sister publication The Insurance Insider reported

A decade ago, cat bonds were almost universally rated - usually by Standard & Poor's and sometimes by Fitch Ratings

One often-cited statistic in debates about the convergence market is that just a 1 percent allocation from global institutional investors could send billions more capital than the size of the current overall reinsurance market surging into the sector

Insurers of the future are likely to move to more of a banking model by sourcing risk to transfer directly to institutional investors instead of holding onto the bulk of their liabilities, according to the president of TigerRisk Capital Markets & Advisory

Transferring a broader range of risks from outside the catastrophe market would help develop better partnerships between insurance carriers and ILS capital providers, Generali's reinsurance buyer Mirko Sartori has argued

Generali's Horse Capital I was named winner of the Non-Life Transaction Award of the Year at the 2017 Trading Risk awards

Two major US sidecar investors, Pioneer and Stone Ridge, grew their assets by more than $500mn overall in the quarter ended 31 January 2017

Swiss Re said that Cyclone Debbie had caused more Australian commercial and corporate (re)insurance claims than previous local storms, and put industry losses from the event at $1.3bn

High volumes of new deals kick-started further activity in the secondary cat bond market and gave yields a small boost in the first quarter, but 2017 ILS returns remain well below last year's levels

European ILS managers may have to contend with extra compliance costs following the UK's departure from the EU, according to lawyers

ILS capacity has acted as the equaliser of Florida hurricane rates. It chased after the extra margin that reinsurers built into their calculations in taking on their peak hurricane risk, with the logical result of helping to erode the margin

Dutch pension fund PFZW has made new allocations to XL-owned manager New Ocean and to Munich Re for 2017

Negotiations are already well underway in the run-up to the 1 June Florida reinsurance renewals, as ILS market underwriters push to secure participations with the state's stronger performers

Nationwide Mutual Insurance Company is seeking to raise $300mn from a new Caelus Re cat bond, according to sources. Normal 0 false false