Investments

Investors and funds with exposure to mortgage risks are carrying in some cases significant amounts of flood and storm surge risk exposure that is not covered by insurance and has not been transferred, presenting a potential opportunity for parametric risk transfer structures and perhaps catastrophe bonds or ILS. A landmark catastrophe bond transaction from earlier…

Third-party reinsurance capital, flowing in from the insurance-linked securities (ILS) market and other sources, is now the main driver of property catastrophe pricing, according to A.M. Best who expects investors to “hold the line” on returns. The growing size of the ILS market and alternative sources of reinsurance capital over the last decade has seen…

During a period of broad financial market dislocation, the catastrophe bond space continues to exhibit resilience, and in the current operating landscape, the attractiveness of the asset class is enhanced, according to Luca Albertini of Leadenhall Capital Partners LLP. Primary catastrophe bond issuance has rebounded after a halt caused a slower start to the second-quarter…

U.S. primary insurance carrier group FedNat Holding Company has successfully secured around $1.9 billion of reinsurance protection for its subsidiaries, but cited hardening rates and “more restrictive” terms from markets at the renewals. FedNat has again purchased slightly more protection, taking its catastrophe excess of loss reinsurance coverage up to $1.9 billion, with single events…