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.

The Swiss carrier says any increase in P&C claims arising from the ruling won’t materially impact its earlier assessment of $750mn in Covid-19 claims.

Nearly 1,000 insurance disputes over pandemic coverage were filed by the end of July, according to data highlighted by sister title Inside P&C.

The absolute quantum has moved but the outlook is broadly the same, CFO Quinn said.

The late July High Court hearing will also involve Arch, Argenta and QBE.

The insurer has forecast a total hit of $750mn for 2020 across all lines.

The company’s Francis Bouchard said climate change was “one of the most dangerous and most complex risks we face”.

Rick Pagnani was most recently CEO of Everest Re’s Mt Logan vehicle.

The company may add to its existing catastrophe and US commercial reinsurance programmes.

The executive has been with Zurich since 2003.