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Coronavirus is just one factor driving rate increases, (re)insurers said.
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People moves in the ILS marketplace.
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Nat-cat experience was slightly adverse but Covid-19 losses were the main driver. -
The insurer said it has substantial reinsurance cover available although none have been drawn on yet.
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Puerto Rico, the US and British Virgin Islands and other territories are under storm warning.
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The (re)insurer also said most of LCM’s investors have appetite to go forward and remain active in the ILS market.
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The reinsurer did not provide an updated Covid-19 loss estimate.
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The estimate includes privately insured wind and storm surge damage to homes, commercial properties and cars, but not NFIP losses.
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The deal is the second mortgage ILS transaction to close post-pandemic.
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The storm remained offshore but lashed Kauai with rain.
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The platform allows brokers to manage reinsurance deals from offers to execution.
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This is the largest insurance fund the fixed income specialist has raised.
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Following two decades at Aon Benfield, he will join Lockton sometime next year after his gardening leave.
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Claims on 15 cat events impacted the carrier, with most losses related to April.
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Hailstorms across the Midwestern US will likely add to substantial losses this year.
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The fund expanded its distribution efforts in the two main Australasian countries last year.
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The two tranches of notes will expire in October 2024.
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The $50.25mn Randolph Re Series 2020-1 private cat bond will mature after one year.
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Cat programmes have been completed this year, but a heavy hurricane season could shake up the market, the broker said.
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The Monetary Authority is also exploring initiatives to support pandemic, cyber and climate ILS, an official says.
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Several US states were hit by tornadoes, heavy rainfall and large hail in July.
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The rating could fall if the company fails to meet deadlines, the agency has warned.
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The start-up carrier reduced its price guidance for both tranches of the deal.
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US cat events in June resulted in some 250,000 insurance claims being filed and four deaths.
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Non-life lines have fared better than life products and premium volumes may fully recover in 2021.
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Regulators have remained responsive despite the Covid-19 pandemic, according to the Obsidian CEO.
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KKR described the $4.4bn deal as a “transformative event” and a “highly strategic” investment for the company.
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She will leave Schroders at the end of the month after spending more than seven years at the company.
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Twelve Capital's Urs Ramseier says the potential for more distressed opportunities to appear will depend on the extent to which carriers pass on increased reinsurance costs to policyholders
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The Northeast P&C insurer said it is expecting AM Best to review its financial strength rating in response to the cutback.
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The European earthquake bond will pay investors a 450 basis point spread.
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The island's ILS capacity grew by $19bn, or 37 percent, the year after Irma.
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This comes after its previous $320mn pandemic bond was subject to criticism over the time it took for it to pay out.
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Cat bond investors received better risk-adjusted rates on new issuances, but lower risk levels meant average spreads fell year on year.
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The consultancy firm also argued that the World Bank should buy more pandemic cover after receiving a payout under its cat bond programme.
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The interim CEO said this marks a new era for the utility firm.
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The deal settled at the low end of the revised spread guidance.
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Pure cat bond funds fared better than those with private ILS strategies.
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The investment hit to the industry has nearly been erased, while capital raising is approaching the scale set by the class of 2005 start-ups.
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The firm has narrowed its price guidance range, suggesting a higher multiple.
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Robson will assume additional responsibilities as Suncorp changes the unit that handles reinsurance.
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The ratings agency placed the bond on credit watch in late March as Covid-19 deaths in the UK began to surge.
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The two-tranche deal will provide US storm and Canadian quake cover.
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ILS can spread climate-related risks and reduce potential financial costs, the body said.
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An influx of underwriting capacity will likely limit the extent to which reinsurance rates rise, the agency said.
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Losses to the Res Re and Caelus ILS series have narrowed from prior investor expectations.
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Bond spreads settled at the lower end of the revised guidance.
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An active hurricane season could further amplify RoL increases, the investment bank warns.
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The reinsurer has lowered its spread guidance for both layers of the deal, sources said.
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Earlier this week, Guatemala received a $3.6mn payout for losses incurred from tropical storms Amanda and Cristobal.
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The deal could settle towards the lower end of guidance price, one source said.
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The role at Lockton's Capital Markets unit is targeted at bringing together insurance and alternative asset management industries.
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Tropical Storms Amanda and Cristobal triggered the country's excess rainfall cover.
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The deal will add to $125mn of ILS cover that the electricity provider has from an earlier transaction.
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She has over 20 years of (re)insurance experience and will start her new role at Willis Re in mid-July.
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Calgary storm could rank among Canada’s costliest cat events, according to Aon.
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Fidelis has raised over $1bn so far this year from a series of equity and debt raises.
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The £280mn ($438mn) deal will see MetLife provide PIC with UK longevity risk reinsurance cover.
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The equity investment into Jackson is set to close in July.
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The deal took cat bond lite volumes to $139mn in 2020.
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Current spreads should persist in the short-to-mid term but are not a new normal, the Fermat Capital leader argued.
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The spread on Achmea’s new European bond has moved to the bottom of the initial range, contrary to a trend seen in the market.
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Funds will be raised by contributions from at-risk businesses, insurance companies, plus cat bonds and government funds.
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Investors collectively tried to redeem more than a third of the $3bn fund.
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This would be the reinsurer's fourth cat bond of the year.
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The bond will provide second-event US wind and quake cover.
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While many brokers are embracing clearing platforms, some firms feel threatened by the technology.
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Despite an active outlook for the season, weather patterns could protect the coastline, it said.
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The capital release was largely connected to 2019 side pockets.
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The Floridian carrier increased its private reinsurance programme to cover growth despite rate increases.
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Avatar has increased the spreads on its new Casablanca Re bond just a week after hiking them by 16-18 percent.
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The bond’s spread has settled at the top of the (re)insurer's target range.
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As many parts of the world start to emerge from lockdown, potential Covid-19 BI claims are yet to be tested.
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On a risk-adjusted basis, the cost of Citizens’ private reinsurance programme increased 20 percent year on year.
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The university scientists now expect nine hurricanes, up from eight in their earlier forecast.
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The sidecar’s loss ratio improved by 30 points year on year.
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The result fell below the 10-year monthly average of an 0.11 percent gain.
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The Dutch reinsurer is hoping to double its expiring cat bond limit.
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The Florida-based insurer’s spend rose by 17 percent to $262mn.
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The carrier took a small co-participation on its first layer, effectively lifting its retention.
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R&Q executives have said managing legacy business on behalf of third parties is part of their strategy going forward.
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The bond will pay a considerably higher spread than the Alamo Re bond issued last year.
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Both tranches of Avatar’s second-ever Casablanca Re cat bond have had their spread guidance increased by 16-18 percent.
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The bond’s spread has moved to the top of the initial range, following the prevailing trend this renewal.
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The bond will renew only part of previous Blue Halo cover benefitting Nephila's fronting partner.
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Earlier, the carrier added a pandemic exclusion to the annual aggregate bond.
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Multiple carriers had to revise official terms to get programmes home as reinsurers held firm on price demands.
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The FHCF opted to “sit this renewal out”, according to sources.
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It becomes the eighth ILS specialist firm to join the standards association, and the third this year.
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The platform aims to improve the liquidity of collateralised reinsurance.
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Seo and Millette both expressed optimism about inflows into ILS over the coming months.
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The cat bond is set to pay up to 125bps more than last year’s Alamo Re deal, which has a near-identical risk profile.
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Launched late in the renewal process, Casablanca Re is offering spreads of 600-850 basis points.
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The insurer's Castle Key subsidiary will pay a 5.5 percent spread for the cover, up 70 percent from the rate on an expiring 2017 cat bond.
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Earlier this week, the company pulled another Everglades Re bond it had simultaneously marketed alongside this deal.
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Earlier this month, the carrier said it wouldn’t renew its 2017 Torrey Pines Re cat bond.
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The company said last month that it would redeem 8.9 percent of the Reinsurance Opportunities Fund via a new stock buyback.
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After the immediate claims hit, reinsurers face the prospect of harder rates but shrinking premium volumes in some lines.
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The insurer will proceed with a $100mn ILS deal for its personal lines account, but dropped a separate coastal aggregate cover.
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Pricing has moved to the top of the initial guidance, according to sources.
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The transaction covers storm and earthquake in the US.
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This is the latest indication that reinsurers are standing their ground in the mid-year renewal.
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The Florida firm hopes the higher spreads will help it replace $300mn of expired bond cover.
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The Zurich-based firm has focused on the cat bond space since launching almost two decades ago.
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The CEO stressed that ILS’ non-correlated nature makes it an attractive asset class in periods of financial instability.
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Reinsurance rates increased were manageable, a number of carriers said.
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Even as Florida rates improve, the reinsurer said it expects to hold back capacity for net growth and potential new demand.
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Despite market pressure, HCI is expected to complete its reinsurance programme on schedule, CEO Paresh Patel said.
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The two new cat bonds are set to become the highest-paying bonds the CEA has completed in recent years.
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The sidecar’s AuM has held steady and remains an important hedging mechanism to the reinsurer, it said.
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The carrier abandoned plans to do a new cat bond and boosted traditional cover on “better terms”.
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The spread on the deal settled 16 percent higher than initial forecasts.
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The Floridian insurer said it has secured most of the reinsurance limit it requires ahead of the 2020 hurricane season.
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The modelling agency noted that an easing of the restrictions would reduce this percentage.
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The carrier said it would focus on growing outside of Florida until pricing in the state “more accurately reflects our increased costs of doing business.”
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Some insurers in the panhandle may not be able to handle reinsurance rate increases in the 1 June renewal, according to Bruce Lucas.
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The new multi-peril deal would effectively replace a soon-to-expire 2017 bond.
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Losses from 2019 Japanese cat events have risen by nearly 13 percent since mid-March.
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Plenum’s CEO said the hire of Grieger and a SocGen credit research leader will “unleash significant potential” by adding insurance bond capabilities.
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Retro deals are seen as a particular concern over growing fears that trapped capital will again be an issue in 2021, as post-2017 innovations will be tested out.
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The cover was raised fairly evenly between the two remaining tranches.
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All cat bond funds across the Eurekahedge ILS Advisers index finished lower in March due to the mark-to-market hit from Covid-19.
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The carrier has now exhausted its private reinsurance cover for 2017 storm Irma, with $1.3bn of public reinsurance cover remaining.
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The Floridian insurer remained in underwriting profit but recorded $4.3mn of prior-year loss creep.
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BI may seep into some reinsurance and retrocession covers but insurers will take the biggest hit, said the head of ILS at Schroders.
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Renewals could help cat bond spreads return to pre-Covid levels, the broker added.
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The California Earthquake Authority joins a rejuvenated cat bond market with several deals launched in the past week.
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The transaction will provide storm surge and quake cover for New York's subway system operator.
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The insurer's Q1 net profit fell 25 percent to $600mn as cat losses were almost double those of Q1 2019.
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Sources said conditions in the cat bond market had “pretty much gone back to normal”.
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The firm has already raised over $600mn from two Matterhorn Re cat bonds issued earlier this year.
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Founding partner of Twelve Capital Sandro Kriesch said he does not expect many ILS funds to “be on the hook” for Covid BI losses.
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Modelling firms said there were too many variables to quantify the impact, but many factors could escalate claims.
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The earliest the bond could have paid out was 9 April, but the coronavirus growth rate in covered territories wasn’t high enough.
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Early firm orders showed similar levels of increases to 2019, but are not expected to be a strong benchmark in a fast-changing market.
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The fund generated more than double the return on the Swiss Re Cat Bond Index in Q4 19.
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Last week, sources told this publication it is “unlikely” the bond will pay out this month.
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A source said it was unlikely the bond would trigger as early as this month, but noted that the pandemic remains unpredictable.
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CEO George Manning Rountree says the firm's Elementum Advisors business is in good shape.
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Company shareholders voted to wind down the beleaguered fund last March, and the run-off is expected to take a few years.
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Insurers are increasingly turning to the state-backed reinsurer for capacity.
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The former M&G adviser will practice corporate, commercial and regulatory insurance law.
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The platform transacted the most cat bond lite deals of 2019, with $300mn raised from such listings.
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The M&A deals were predominantly mergers, but there was some activity on the acquisition side as well.
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Jay Green starts in the role on 1 June, leaving GC Securities’ ILS team where he worked as a managing director.
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Countries from several continents have received disbursements of varying sizes to help them deal with the Covid-19 pandemic via the CAT-DDO credit lines.
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Spillover from the Covid-19 stock and bond market crashes made for some turbulence towards the end of the quarter despite the impressive volumes issued.
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Social inflation trends will make BI disputes particularly acute in the US.
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Willis Re said overall ILS share was stable, as some took advantage of rising rates in Japan.
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The three-year bond aims to lessen impacts of the Covid-19 pandemic on African economies, the bank explained.
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Sources have warned that the cat bond sell-off could restrict capacity in the upcoming Florida renewals.
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The company's CEO said the platform aims “to make the traditional broker business model a thing of the past”.
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A Blenheim director described the move as a principal steppingstone.
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CEO Bob Ritchie said entering the cat bond market offered stability for the company and policyholders.
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Tremor’s CEO said the “(re)insurance market must remain open for business” during this turbulent period.
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Both tranches of the bond could trigger as soon as April, once the growth rate is calculated.
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The consultancy with more than A$410bn in AuM said Joseph Clark's insurance background would benefit clients.
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Aon's estimate shows that bulk sums offered rose from the $250mn previously reported.
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Gero Michel has five years of international cat underwriting experience and most recently spent six months at Aon.
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The ICA has increased its estimate for the January hailstorm total losses to A$1.2bn.
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Sources said “cash is king” in times like this, but dedicated ILS funds are still holding positions.
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With up to $4.5bn of anticipated volume in the works, ILS broker-dealers are waiting to see how multi-strategy sellers will impact the primary market.
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Severe pandemic stress could drive up industry medical benefit ratios to levels that may trigger junior layers of the health cat bonds.
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The total has increased 30 percent since December, the General Insurance Association of Japan said.
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Brian O’Neill most recently served as a managing director at Guy Carpenter and head of the Tampa office.
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Multi-strategy funds seek to liquidate $200mn of cat bonds
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Despite this rare withdrawal of a cat bond, another Florida-centric deal is moving closer to completion.
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The California governor had opposed the package as he was concerned the company was taking on too much debt.
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John Seo noted the diversification benefits ILS offers in tumultuous times as cat bond segment avoids spillover from market turmoil.
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Pricing has moved to the top of the initial range offered.
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Timings, penalty fees and dual treatment of attritional claims are among the measures under consideration.
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This is the first time premium income has outpaced claims in three years.
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Isosceles Re will run alongside Cerulean Re, which was set up in 2017 to manage private ILS deals.
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The board has six specialist ILS members, in addition to pension funds and other institutional investors.
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The approaching three-year statute of limitations on Irma claims could prompt another spike in AOB issues, warned FedNat.
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Kaniewski spent over two years as FEMA’s second in command.
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The losses include those of the parent company as well as Monarch National Insurance Company.
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The investor bought a minority stake in Elementum last year.
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The outcome for pricing was mixed across the four-tranche transaction.
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The manager is now the sixth specialist ILS firm to join the SBAI.
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First-event cover and the level of per-event deductibles in aggregate typhoon deals are being re-examined.
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The bond will cover named storms, earthquake, severe weather and other perils, according to sources.
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The World Bank’s pandemic bond is expected to partially pay out as deaths surpass trigger points.
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Pricing has moved in both directions across the four tranches, sources said.
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The drinks manufacturer first invested in reinsurance in 2012.
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The issue will effectively renew quake and storm cover, with one of the company’s $100mn bonds expiring in June.
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Sources described the bond’s sustainable development focus as a “nice touch”.
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The group CUO stressed that returns shouldn’t be judged on a one-year period.
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Benjamin Jacquet has worked at the company for just over three years
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Projected Ciara/Dennis losses for major local insurers are expected to be below reinsurance retentions.
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The insurer had considered cutting its programme back to $1.9bn.
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Youssef Sfaif has worked at the Dutch pension fund since 2017 and was most recently an associate director.
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The deal will take total cat bond cover available to the National Flood Insurance Program over the $1bn mark.
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Ciara and Dennis could be the most significant European windstorm losses since 2018.
