Trading Risk February 2018

The cumulative insured loss number from PCS for 2017 hurricane and wildfire claims now stands at $68bn, with all cat perils in the US totalling $88bn.

Pricing for industry loss warranties is up by 15-30 percent on loss-affected covers, according to figures from brokers, as the market picks up after a slow start to the year.

AIG's surprise move to take over AlphaCat parent Validus continues the trend for reinsurer-affiliated asset managers to dominate M&A activity within the ILS management sector.

The strategy of Langhorne Re, the closed-ended life fund set up last month by RenaissanceRe and life reinsurer Reinsurance Group of America (RGA), will be based largely around a leveraged asset play, according to sources.

Losses from US primary habitational and coastal hotel accounts have driven pockets of localised hardening in the US commercial property insurance market, with rate increases of as much as 70 percent for some risks.

The 2017 calendar year was the costliest on record for weather events, with insured losses estimated at $132bn, according to Aon Benfield's Impact Forecasting.

Abuse of side pockets in the financial crisis - when hedge funds locked in investors to avoid having to sell off discounted assets - has made the practice less palatable in the wider financial markets.

Floridian insurer Heritage has named Kirk Lusk as its new CFO with effect from 28 April, when Steven Martindale will step aside.

Fergus Morrison is expected to join the underwriting team at Bermudian ILS manager Aeolus later this year, Trading Risk understands.

AIR Worldwide has appointed Roger Grenier as senior vice president of global resilience.

Former Novae direct and facultative (D&F) head Nik Lucking is to lead Barbican's new property D&F underwriting platform in Bermuda.

Vic Pannuzzo is to become chief executive of Artex Risk Solutions' new office in Singapore.