Insurance

Lloyd’s of London’s recently established insurance-linked securities (ILS) structure, the multi Insurance Special Purpose Vehicle (mISPV) named London Bridge Risk PCC Ltd., is for now limited in its use to quota share reinsurance transactions with a Lloyd’s member, we can report. The London Bridge Risk PCC Ltd. structure was approved by regulators and launched back…

The intensity of extreme cold events such as the recent US winter storms and Arctic deep freeze may become more volatile as the climate changes, Aon has warned, saying that the February loss event will be a record. Currently, insurance and reinsurance industry loss estimates for the recent US winter storms stand at anywhere from…

France-headquartered global reinsurance firm SCOR has put in place a sidecar-like, quota share retrocession vehicle named Mangrove Insurance PCC Limited through which it transfers some of its longevity risk to third-party investors. Mangrove Insurance PCC Limited is one of SCOR’s special purpose vehicles through which it taps the capital markets for retrocessional reinsurance capacity. Mangrove…

Bermuda’s reinsurance sector was hit by more catastrophe losses than costs from the COVID-19 pandemic in 2020, according to data from Fitch Ratings. Nine reinsurance firms with operations in Bermuda are assessed by Fitch and the rating agency notes that the stable rating outlooks it has in place on global reinsurance and U.S. property/casualty (P/C)…

The size of the estimated winter storm insurance and reinsurance market loss from February’s severe Arctic freeze and the issues suffered by energy organisation the Electric Reliability Council of Texas, Inc. (ERCOT) has raised speculation over the chances of subrogation becoming a possibility for carriers. Record freezing temperatures ended up driving significant issues across ERCOT’s…

German reinsurance giant Hannover Re benefited from its retrocessional protections throughout 2020, potentially ceding almost one-third of natural catastrophe losses and 24% of its losses from the COVID-19 pandemic. The reinsurer reported its full-year 2020 results this morning, revealing that large losses came in well above budget for its P&C reinsurance business due to the…

As insurance-linked securities (ILS) such as catastrophe bonds demonstrated their relative lack of correlation to broader financial markets again in 2020, the year was another defining one for the market, Swiss Re believes. In its latest ILS market report, Swiss Re Capital Markets, the specialist ILS focused unit of the global reinsurance firm, highlights some…

Global reinsurer Hannover Re fell to a loss in its property and casualty reinsurance division in 2020, as impacts from the COVID-19 pandemic drove a fourth year in succession of above budget large losses for the company. Overall large losses, including those from the COVID-19 pandemic and global catastrophe activity, came out at almost EUR…