Trading Risk June 2018

Tropical Storm Risk (TSR) said there was a high chance that 2018 hurricane activity would fall within the lowest one-third of years since 1950.

The Bermuda-listed vehicle was established with $45mn raised from investors, with the remaining $5mn coming from the insurer itself.

Hurricane season is now open, but I’d argue that the persistent headwinds facing the reinsurance industry are far more challenging than anything the Atlantic may send its way this summer.

Recent developments in the sector have underscored the difficulties reinsurers are grappling with as they attempt to work ILS capital into their business model.

June people moves in the ILS market

Florida catastrophe reinsurance rates crept up by 1.2 percent on average at this year’s 1 June renewal, marking the first increase in seven years, according to JLT Re.

Willis Towers Watson has invested in a platform designed to support new managing general agencies (MGAs), sister publication The Insurance Insider reported.

Private lapse deals are on the rise in the ILS market, driven by Solvency II regulations which require life insurers to hold onto more capital for lapse risk, according to life ILS managers.

The average gain across a group of sidecars that remained on risk in the three months to 31 January came to 3.2 percent.

Leadenhall Capital Partners has won a mandate to invest £80mn ($106.8mn) for the North Yorkshire Pension Fund.

Floridians HCI Group, United Insurance (UPC) and Heritage all spent more on reinsurance during the renewal, while Federated National shrank its reinsurance costs by 17 percent.

The reinsurer has raised $530.5mn of Sector Re debt since December 2017, ahead of the $492.0mn raised last year and the $394.7mn of limit available in 2016.