Everest Re
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Reinsurer executives during a Aon reinsurer panel stressed that the industry worked hard on setting the right structure. -
Sources said that the carrier has held preliminary talks with private debt investors.
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Reinsurers are confident on cat rates and ready to deploy ILS capital.
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In Q2 last year, Everest ceded $26mn in losses to Mt Logan.
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The bond is split across a Series 1 and Series 2 structure, with eight notes in total.
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Everest Re increased the targeted size of Kilimanjaro Re across all four classes of notes.
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Pricing on all classes of notes are being offered at the bottom of the guided range.
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Everest Re has structured its deal into two sections targeting aggregate and per occurrence cover.
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Premiums ceded to the ILS vehicle increased by 76% to $433mn.
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Programs did not offer adequate risk-adjusted return.
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The Bermudian’s wildfire loss estimate was based on an industry loss range of $35bn-$45bn.
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CEO Jim Williamson said social inflation was a “growing barrier” to a vibrant economy.
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The (re)insurer recorded a reserve charge of nearly $1.3bn within its casualty insurance book.
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He was appointed acting CEO earlier this month, after Andrade’s departure.
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He succeeds Wayne Peacock, who retires this year after four years of service.
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Andrade is taking up a CEO role at another “prominent financial services firm”, Everest said.
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Everest is in the process of transforming its ILS offering.
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Ceded losses grew by 69.2% in Q3 from the prior year quarter to $44mn.
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Andrade flagged expected 5% to 10% increases in the US and Europe.
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The Dutch scheme is the largest ILS allocator with a long list of mandates within the sector.
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Cat bond funds continue to draw interest as private ILS more challenged.
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Everest losses ceded to Mt Logan grew by 63% to $26mn.
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Total pre-tax cat losses for the quarter grew sixfold YoY to $135mn.
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Reinsurer-managers are building out asset management infrastructure as they expand.
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The firm said the move would let it build a multi-vehicle capital management platform.
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The executive joined in January after a decade at Liberty Mutual.
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Cat bond deals placed last week amounted to $150mn of issuance.
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A degree of pricing volatility was evident in the market this week.
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The shift in market dynamics reflects $1.8bn of maturities last week.
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The bond is split across Class A and Class B notes that have different levels of risk.
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Over Q1, the loss ratio improved by 34.6 points year on year to 43.7%.
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Vincent Pomo spent more than 11 years at Everest Re in a variety of roles.
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The firm expects pricing and terms and conditions to hold.
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The vehicle’s loss ratio improved 66 percentage points YoY.
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The carrier booked a reserve charge of $392mn for casualty insurance.
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The claw-back is anticipated after PCS revised down its Ian loss estimate.
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The sidecar’s loss ratio improved by 139 points to 35% in the latest quarter.
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The company’s on-risk Kilimanjaro Re cat bond volumes have been gradually shrinking in the past year.
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The firm had earlier noted that the cat bond coverage would kick in if the PCS industry loss number reached $48bn.
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Early private deals have provided far more stability in this year’s renewal than last.
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This comes as the reinsurer is preparing a major equity raise to attack the harder reinsurance market.
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Net proceeds will be used for general corporate purposes, which may include expanding its existing business lines and operations.
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Details of the placement are being closely guarded, but one source suggested the raise could be in the region of $1bn.
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Should reinsurers retain the option of playing in ILS, or take a ‘go hard or go home’ approach?
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The reinsurer revealed it raised money in Mt Logan at the 1 January renewal.
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The cat XoL rate increase in Europe was over 40%, while the average attachment point of the global property cat business increased “meaningfully,” he added.
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The reinsurer’s combined ratio fell to 87.8% in Q4 2022, improving 4 points against the prior-year quarter.
