Insurance
PGGM added an ILS relationship with PartnerRe in 2019
PGGM, the Dutch pension fund administrator and investment manager and the largest single source of assets in the insurance-linked securities (ILS) market, added a relationship with global reinsurance firm PartnerRe in 2019, as it expanded its ILS partner roster to ten. PGGM, which invests in the ILS and reinsurance market on behalf of one of…
Read MoreSubstantial amounts of collateral to be trapped at year-end: RenRe CEO
Renaissance Re, the Bermuda-based reinsurance underwriter and manager of increasing amounts of third-party capital, believes that Covid-19 uncertainty means “substantial amounts of collateral will be trapped” at the end of 2020, the firms CEO Kevin O’Donnell has said. Trapping of collateral has always been expected, given the uncertainty over potential losses facing reinsurance and retrocession…
Read MoreFitch warns Covid-19 to hike reinsurer combined ratios to 103.5% in 2020
Reinsurance companies are set for their fourth technically unprofitable year of underwriting in a row according to rating agency Fitch, who forecast that combined ratios across the sector will rise to 103.5% due to the impact of Covid-19 losses. This has implications for insurance-linked securities (ILS) investors and ILS funds, not just in the fact…
Read MoreInsurance March employment figures at odds with other industries
On May 8 the Labor Department reported that the U.S. labor market lost a historic 20.5 million nonfarm jobs in April, sending the unemployment rate to 14.7 percent. The worst affected sectors are leisure and hospitality, which lost 7.7 million workers. Dr. Steven Weisbart, Triple-I’s chief economist, points out that the employment data for March…
Read MoreArch says Covid-19 unlikely to trigger Bellemeade Re mortgage ILS
Arch Capital Group Ltd., the Bermuda headquartered insurance and reinsurance specialist, has said that it expects the amortisation of its Bellemeade Re mortgage insurance-linked securities (ILS) transactions may be halted by an expected rise in delinquencies due to the coronavirus pandemic. But, Arch does not at this time expect that losses to its mortgage insurance…
Read MoreElementum fee revenue $37m in 2019. No significant Covid-19 impact in Q1 2020
Elementum Advisors, LLC, the insurance-linked securities (ILS) fund management and collateralised reinsurance underwriter that is 30% owned by White Mountains, earned $37 million in fee revenues in 2019, which was a roughly 9% increase in revenues on the previous year. Partial owner White Mountains also disclosed recently that the Elementum ILS fund management business has…
Read MoreILS asset valuation “an art and a science” – Horseshoe’s JB Crozet
Valuation has become an increasingly important element of assessing an investment in the insurance-linked securities (ILS) asset class, and while it’s vital to consider loss and modelling data, market intelligence plays an important role, explains JB Crozet, SVP Advisory Services & Head of London Office at Horseshoe. In the aftermath of the significant catastrophe loss…
Read MoreSuncorp reinsurance renewal on track, but aggregates may be a challenge
Australian primary insurance giant Suncorp has said that completion of its catastrophe reinsurance renewal by July 1 remains on track, but highlighted that placing its aggregate reinsurance coverage could be more of a challenge to place. Suncorp’s losses from natural catastrophes and severe weather over the last year had already eroded a significant amount of…
Read MoreTWIA targeting $200m Alamo Re II cat bond issuance for 2020
The Texas Windstorm Insurance Association (TWIA) is likely to target $200 million or perhaps greater of protection from an Alamo Re II Ltd. catastrophe bond issuance for 2020, as the capital markets look set to continue playing an important role in its reinsurance program. As we explained back in February, TWIA had lifted its target…
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