Insurance

The decline in available retrocessional reinsurance capacity is being exacerbated by ongoing fears over potential losses related to the COVID-19 coronavirus pandemic, on top of the added issue of pre-emptive trapping of collateralised ILS capacity, according to the rating agency. In a new report, A.M. Best highlights that COVID-19 has created a sense of fear…

A number of the major property and casualty insurers that are seen as most exposed to hurricane Laura’s impacts on the Gulf Coast region could tap into their reinsurance programs, should the major hurricane prove particularly impactful. Analysts from Morgan Stanley explained that Allstate, Travelers, Progressive and The Hartford are all insurers that should be…

According to our market sources, secondary market trading of catastrophe bonds under the approach of hurricane Laura was “relatively light” by comparison to other major hurricane threats, perhaps suggesting that the uncertainty in the forecast cone made it more attractive to hold onto certain positions. Hurricane Laura, while a very significant and damaging hurricane that…

The ongoing spate of California wildfires continues to burn, with more properties destroyed in the last day and an estimate from Moody’s Investors Service suggesting insurance and perhaps reinsurance market losses are already at over $1.5 billion. Moody’s based its estimate on the fact more than 1,800 residential or commercial properties have been destroyed by…

Markel CATCo Investment Management’ in run-off retrocession focused investment fund, the CATCo Reinsurance Opportunities Fund Ltd., is to release a further $25.6 million of its trapped capital back to investors, as more positions in its side-pockets see positive reserve development. The news follows a $37.9 million return of trapped capital from the retrocessional reinsurance fund’s…

Hurricane Laura has made landfall in the last hour as an extremely dangerous and large Category 4 hurricane with 150 mph sustained winds, near Cameron, Louisiana, around 30 miles SSW of Lake Charles. Hurricane Laura intensified right up until landfall, almost making it to Cat 5 strength, as its central pressure continued to drop to…

Hurricane Laura analogue storms from the past, so major category 3 to 4 hurricane landfalls that hit similar areas of the Louisiana/Texas border region, show a $0.8 billion to $5.9 billion range of insurance industry losses, according to modelling by RMS. Catastrophe risk modelling specialist RMS has shared data that shows historical category 3 to…

Catastrophe bonds are still likely to escape the wrath of strengthening hurricane Laura unscathed, according to Zurich based ILS and reinsurance asset manager Plenum Investments. Plenum had said earlier this week that based on the forecasts at the time hurricane Laura may not have been strong enough to impact any outstanding catastrophe bonds in the…