Insurance

Catastrophe bonds are likely to become an increasingly “mainstream” component of institutional investor portfolios, as the asset class comes under increasing attention having proved its value again during the volatility driven by the pandemic, according to Brett Houghton, Managing Director at Fermat Capital Management. The catastrophe bond asset class and other insurance-linked securities (ILS) or…

Moody’s Investors Service believes that the property and casualty insurance and reinsurance industry loss impact from the global Covid-19 pandemic will be somewhere in the range from $50 billion to $80 billion, which is around the middle of current estimates. The overall P&C market impact from coronavirus related losses is likely to only be the…

The impacts of elevated severe and convective weather occurrences in the U.S. continue to be apparent in the latest pre-announcements of second-quarter 2020 losses, as insurers Cincinnati Financial and Selective Insurance Group added to the industry toll last night. The insurers have both reported severe weather and catastrophe losses above where analysts had been expecting,…

Heritage Insurance Holdings, Inc., the Florida headquartered and nationally expanding U.S. property casualty insurer, said that it experienced an unusually high number of catastrophe events in the second-quarter of 2020, driving an expectation of roughly $26.8 million of pre-tax losses from severe weather. Like many other property insurers operating in catastrophe and severe weather exposed…

Further evidence of the elevated impacts of severe and convective weather in the second-quarter of 2020 are apparent in a pre-announcement from property and casualty insurer The Hanover Insurance Group, Inc., which expects around $148 million of catastrophe losses for the quarter. The Hanover said last night that it is expecting around $148 million of…

Arch Capital Group, the Bermuda headquartered specialist insurance and reinsurance carrier, has pre-announced an expectation that its second-quarter 2020 catastrophe losses, including from the pandemic, will reach as much as $225 million. Arch has pegged its pre-tax catastrophe losses for Q2 in a range from $205 million to $225 million across its property casualty insurance…

Recent tropical storm Fay, which took the record as the earliest F named storm in history as it targeted the U.S. northeast region, is estimated to have caused an insurance market loss of roughly $400 million by catastrophe risk modeller Karen Clark & Company (KCC). Tropical storm Fay formed off the North Carolina coast on…

U.S. primary insurance carrier Travelers is the first major player to reveal its expectations of making a relatively significant PG&E subrogation recovery, while at the same time revealing $854 million pre-tax catastrophe losses from the second-quarter. As we’ve been documenting over recent months, Pacific Gas and Electricity (PG&E), the wildfire stricken California focused electrical utility…

The emergence of second waves of the Covid-19 coronavirus pandemic could create another meaningful hit to the capital bases of insurance and reinsurance companies, as both investment market volatility and insured losses will mount. S&P Global Ratings warns that even without a second wave, the Covid-19 pandemic is destined to further erode re/insurers capital buffers…