Collateralised reinsurance

The facility will initially focus on US, Bermudian and European business.

The resource was developed by leading ILS managers and investors.

Scott Cobon's most recent title was MD, insurance management services.

Hannover Re Capital Partners is in talks with two investors for 1 January launch.

The ratings agency warned negative PYD on US casualty will likely continue.

The CUO has added the role of head of private ILS, joining the executive team.

The reinsurer’s capacity is hugely important to ILS firms, with few alternative providers.

The vehicle will support Platinum Specialty Underwriters, XPT Group’s MGA underwriting unit.

We discuss progress in collateral management with our Outstanding Contributor winner.

Some $400mn of bonds priced in the past week, after a record-setting H1.

The Diversified Alternative Fund’s allocation to cat bonds was up by 31% from $386mn at 31 January.

The fund’s ILS portfolio is split between 70% property cat and 30% cyber risk.

The programme’s total limit this year is down $594mn to $1.36bn.

The total return for the Swiss Re Global Cat Bond Index stood at 0.61% for the month.

The documents figure in a potential criminal case against a CCB employee.

ILS offers efficient capital for underwriters, but casualty ILS transactions are complex.

The bond will provide protection for storms, quakes and fires in seven US states.

The bond protects against losses in the US, Canada, Europe and Australia.

The bond will cover named storms in five US states.

The bond will offer retrocession coverage for Hannover Re.

The carrier increased its cession by around 13% year over year.

An allocation to insurance could “feel like a nice, calm port in the storm” amid wider market volatility.

The bond will provide fire protection for MGA Bamboo’s California business.

The Class A section of the bond has doubled in size, at lower pricing.

The Class B segment of the bond has priced below initial guidance.

The bond provides coverage for storms, earthquakes and severe weather events.

Price guidance for the bond is 7.00%-7.75%.

The former Credit Suisse ILS head Niklaus Hilti said working on life buyout hedges could rejuvenate the life ILS market.

Compressed cat bond spreads could drive some rebalancing, as M&A remains a prospect.

The vehicle is smaller by 8% as White Mountains’ participation grew.

Over-subscriptions have been evident on well-priced US cat treaties.

The firm has commenced writing collateralised retro and reinsurance but its rated launch is still pending.

Initial spread guidance for the three-year bond is set at 425-500bps.

The state insurer is budgeting for an extra 43% of overall coverage in 2025-26.

The fund will invest in listed and private transactions.

Reserve risk specialist Enstar has struck its first deals in the ILS space this year.

Losses from the hurricane may not significantly impact on many funds’ annual returns.

Risk remote strategies, including private ILS, have outperformed higher risk strategies over the last decade.

The manager’s ILS allocation now spans six of its seven investment funds.

Quick-moving cat risk trading may become more prevalent in the ILS market.

The deal economics take into account the investment return that Longtail Re can leverage.

The bond’s pricing for southern US storms landed at the upper bound of guidance.

The parametric bond provides coverage for named storms.

Its Class 13 and 14 notes priced roughly at the midpoint of expectations.

Managers have tightened buffer terms and added extension spreads to enhance illiquid strategies.

The bond will provide protection against Japanese flood and quake events.

The bond will insure against named storms in eight US states.

The firm has integrated a trustee bank API into the RUDDR platform.

The deal is a large expansion on last year’s cat-bond coverage.

The $175mn bond is priced lower than the original range set out in January.

Pricing on Class A notes has reduced for a second time.

The health insurer now expects to secure the lowest-risk tranche of its health bond for under a 3% spread.

Improving the speed and efficiency of settlements is required to help the market grow.

Allstate has expanded the size of the bond twice, now reaching $400mn.

The bond will provide protection from named storms in Florida for three years.

The bond provides protection for North American named storms and earthquakes.

The amount offered in Class A and B notes has also expanded slightly.

The three-year instrument provides cover for US named storms and earthquakes and European windstorms.

Pricing guidance is currently at 6.75%-7.50% for the Class A notes.

The Middle Eastern investor had built up a billion-dollar portfolio, but personnel turnover has ultimately driven it to reverse course.

With fundraising still difficult outside the liquid ILS segment, managers are looking for ways to shore up their economic proposition.

The carrier has also narrowed the pricing on its Class A and Class B notes.

The bond provides aggregate coverage for French weather events.

The bond’s price guidance is between 6.00% and 6.75%.

The pair are seeking $125mn in coverage for named storms across eight US states.

The new offering is structured to solve ongoing ILS market problems including trapped capital, extended settlement times, economic inflation, social inflation, non-modelled risks and pricing uncertainty.

The InsurTech has moved its pricing for the instrument to the top of its initial range.

The transaction builds on a $1.15bn first-of-its-kind hybrid bank and ILS capital deal in April last year.

For the ILS market, perhaps more than any other, the outcome of this year’s high inflation is still to be determined. Unlike other industries that are suffering increased immediate costs, this sector’s performance – as always – is ultimately driven by events no one can foresee.

The bond will provide coverage up to 2026, extendable to 2029.

The fund will take a vertical cut of all non-life business written by Latam specialist Ocean Re.

The firm’s founder said he originated and structured 70% of all ILS deals issued for Japanese perils in the past 12 years.

Hurricane Ian could present a challenge for ILS fundraising conversations this autumn if ILS firms do not find more financing solutions to manage trapped capital, according to panellists at Trading Risk New York 2022 last week.

The Sompo International company was placed into run-off in June 2019.

The state-backed carrier bought two-thirds of its programme in the collateralised market.

The agency said casualty risk was attractive to investors for its low-to-moderate correlation.

The decade from 2010 ran the full gamut of catastrophe loss experience, reminding us that there is no such thing as a "new normal" in the world of ILS.

The firm aims to build on the origination capability of Fleming Re and Accelerant.

One of the ongoing trends within the ILS market over past years has been an increasing demand from existing investors to look for something different within their portfolio.

Just a few months into 2021, the first natural-disaster headlines of the year are already occupying the minds of ILS insurance risk-takers. The snowstorms that brought freezing conditions to Texas will be a challenging event to evaluate for a number of reasons.

Covid-19 and ILS strategies: locking down diversification benefits.

The deal marks the MGA’s first foray into assuming underwriting risk.

Bermuda-based cedants would cede roughly 70-80 percent of peak cat losses to reinsurers, the body said.

The launch will bring collateralised reinsurance transforming in-house.

The platform aims to improve the liquidity of collateralised reinsurance.

Demand for collateralised reinsurance could rise in June and July if cedants set the right price, the ratings agency said.

The Veraton Re vehicle is linked to Brad Chance, a North Carolina-based investor.

Climate change and ILS strategies: reshaping the market's response

Swiss Re ceded an additional $900mn of risk to the alternative reinsurance market in 2019.

The Limited Purpose Insurer framework was set up earlier this year.

A busier cat bond market is expected while a loss of investor confidence is squeezing the collateralised and sidecar markets, said managing director of GC Securities Des Potter.

Christopher Harris, who also held senior positions at Montpelier Re, has made the move to Hudson Structured Capital Management's advisory board.

The firm is “far from a start-up” according to head of ILS business Rick Pagnani.

The reinsurer announced it is looking at setting up a separate balance sheet to write risk on behalf of third-party investors.

The CEO was speaking as Aon launched a new auction platform in Monte Carlo.

Trapped capital is becoming a more important consideration in pricing of collateralised reinsurance contracts, a report said.

Continental reinsurers and Lloyd’s pulled back use of collateralised retro but overall reinsurance use of ILS retro rose from 2015 to 2018.

The platform was launched by Guy Carpenter in 2017, and this is the first year it has transacted deals.

Initial market speculation was that the firm would focus on the sidecar market but it will pursue more of a mainstream ILS offering.

The broker also signalled its ambition to offer passive investment portfolios to ILS investors.

Firming market an opportunity for the growing ILS fund, according to the analysts.

The ILS fund manager reports that the cost of reinsurance via cat bonds is now “painfully expensive” for some cedants.

A paper by academics at Hamburg University compared the results of the Swiss Re global cat bond indices against indices from various other sectors.

This year’s cover is less than the 2018 cover, which was $2.6bn.

The bill still needs to pass two further Senate votes before heading to the state’s Assembly.

The stake in Catco’s listed fund held by the Boston-based asset management firm crossed the five percent threshold last week.

Lane Financial’s latest report shows the best cat bond returns since 2012/13.

The sidecar was established in 2017 to provide support for Hamilton Re’s reinsurance portfolio.

Stone Ridge’s Interval fund has shrunk due to catastrophe events and investor redemptions.

The changes in insurer appetite to participate in the Florida Hurricane Catastrophe Fund and new guidelines from ratings agency Demotech could create opportunities for the ILS market.

The ILS industry in Guernsey was consulted to clarify legal and reporting requirements to meet the Code Group’s standards.

The takeover was announced in October last year and all parties now anticipate closing the transaction “as soon as possible”.

After a consultation with shareholders, the board has decided to pursue “an orderly run-off”.

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.

Renaissance Re issued $857mn new shares for the vehicle last year, as well as $457mn in the January 2019 renewals.

Allianz said it would assist Pimco’s new ILS business through originating collateralised reinsurance and other investments.

The new coverage provides Travelers with enhanced protection for its property business at what CFO Daniel Frey said was “an appropriate price”.

The Dodeka XX notes were listed on the Bermuda Stock Exchange yesterday.

Two transactions were issued on the Bermuda Stock Exchange.

The transaction replaces an expiring $160mn deal issued in 2016.

The Markel subsidiary is under investigation into the accounting of loss reserves for 2017 and 2018.

Sussex Capital UK PCC will be able to write collateralised reinsurance deals for numerous cedants.

ILS Capital Management has taken a minority stake in US insurer Producers National, the firm told Trading Risk.

Tokio Millennium Re’s agreed sale to RenaissanceRe will open up an opportunity for competitors to enter the fronting market.

ILS market participants said there are various ways to manage loss creep in a collateralised reinsurance framework.

The Florida insurer said it had no concerns about collateral availability to meet Irma claims.

Former Marsh broker Richard Green has joined as regional head of the alternative risk transfer business.

In a keynote address at the Trading Risk Rendez-Vous in New York, Daniel Brookman said the (re)insurer of the future will be “large, global and present”.

Collateralised reinsurance was not designed to perform exactly as traditional reinsurance, according to speakers at the ILS Bermuda 2018 conference.

Alternative reinsurance capital increased by 17 percent to $88bn by year-end 2017, despite last year’s catastrophe losses, Willis Re has said in its latest Reinsurance Market Report.