Financial
Pandemic could inflate hurricane industry losses by 20%: RMS
Catastrophe risk modelling specialist RMS has said that a hurricane striking the United States while pandemic restrictions remain in place could end up inflating the ultimate insurance and reinsurance industry loss by as much as 20%. RMS looks at post-loss amplification as part of its normal catastrophe risk modelling process and in the case of…
Read MoreMarkel’s recent $90m CATCo investment was in the Aquilo Fund strategy
As we reported recently, Markel Corporation has invested $90 million of its own capital into an investment strategy managed by its retrocessional reinsurance focused investment manager Markel CATCo, to boost capital available to fund investor redemptions. The investment was made at the beginning of the year and Markel explained that as of January 1st 2020…
Read MoreHiscox’s third-party capital dips, but ready to capitalise on rate increases
Insurance and reinsurance firm Hiscox Group has announced a new capital raise to help the company be better positioned for growth opportunities and rate increases across its reinsurance and U.S. wholesale businesses, but at the same time third-party capital support at the firm has dipped. In reporting its first-quarter trading statement, Hiscox revealed that it…
Read MoreTwo-months of retroactive COVID-19 BI claims could wipe out 50% of re/insurer capital
A new report from A.M. Best highlights the potential damage that any legislative moves to force retroactive business interruption claims into the insurance and reinsurance industry could cause, saying that as much as 50% of re/insurer capital could be wiped out with just two months worth of claims. The business interruption questions related to the…
Read MoreAIG’s new Lloyd’s syndicate – a reinsurance sidecar to its private client book
American International Group, Inc. (AIG) officially launched its latest syndicate at Lloyd’s yesterday, with Lloyd’s Syndicate 2019 set to be the largest ever launch in that market with a target for around $1 billion of gross premiums to be written. Not only is it the largest syndicate to launch in the Lloyd’s market, syndicate 2019…
Read MoreBerkshire Hathaway will write pandemic cover “at the right price”, Buffett says
For Berkshire Hathaway, the insurance and reinsurance underwriting conglomerate led by Warren Buffett, it’s not simply a question of carefully crafted exclusions when it comes to pandemic risks, for the so-called Sage of Omaha is perfectly happy to underwrite it, as long as the price is right. Berkshire Hathaway reported its first-quarter results on Saturday…
Read MoreLanny’s Dividend Stock Purchase Activity – April 2020
April was overall another positive month for the market, after a wild ride down in the mid-to-end of March. There were dividend suspensions across the retail industry and even dividend cuts, including one from a major oil player that did not cut their dividend since the World War days. Time to dive into April’s dividend…
Read MoreRMS launches model platform updates & new HD Euro SCS risk model
Catastrophe risk modelling specialists RMS have announced the launch of a range of product updates to its Risk Intelligence platform, including a new version of its Risk Modeler tool, updated models, plus new high definition risk models covering the European severe convective storm peril across 17 countries in the region. With severe convective and thunderstorm…
Read MoreAXIS’ third-party capital income drops, as cessions to investors decline
Bermudian specialist insurance and reinsurance firm AXIS Capital reported a drop in fee income earned from the use of third-party and insurance-linked securities (ILS) capital within its business, as cessions to investors declined considerably in the first-quarter of 2020. This was to be expected at the end of this quarter, as we reported in February,…
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