Zurich

Managers believed end-investors value diversification and non-correlation of cat bonds over liquidity.

The (re)insurer used alternative capital in the reinsurance coverage.

Peer Zurich had a more stable renewal.

The carrier has upped its global all-perils cat coverage to $1.2bn since January last year.

Analysts said attachment points are now far behind the rate of inflation over the period.

The firm’s European regional treaty cover shrank 9% to $398m.

The group, comprising Credit Suisse ILS, LGT ILS, Plenum, Schroders, Solidum and Twelve, are engaging with brokers to establish a standardised reporting framework for cedants.

The commercial insurance CEO said that the industry should act now before the cat market reached a point of implosion.

The carrier also increased its levels of co-participation on the upper layers of the cover.

Zurich has exhausted its $450mn aggregate reinsurance cover after booking around $450mn in losses from Hurricane Ida and $150mn-$200mn from Storm Bernd.

Zurich’s cat losses for the first nine months are around $1.5bn, suggesting a lower-than expected contribution from Bernd and Ida which implies the firm may have triggered its aggregate reinsurance coverage, according to analysts.

The city’s pension fund recorded a 3% return from its ILS portfolio in 2020.