Insurance
Swiss Re’s new Matterhorn Re 2020-3 cat bond upsized to $215m
The latest catastrophe bond to be sponsored by reinsurance firm Swiss Re has been successfully upsized 7.5% at pricing, we can reveal, with the Matterhorn Re Ltd. (Series 2020-3) transaction now set to secure the company $215 million of U.S. named storm retrocession. At the same time, the pricing for the now two-tranche issuance has…
Read MoreCovid-19 cat bond sell-off drove ILS fund Index negative in March
The average return of insurance-linked securities (ILS), catastrophe bond and reinsurance linked investment funds fell to a negative -0.65% in March 2020, as the significant selling pressure experienced in the secondary cat bond market drove returns down for the month. March’s -0.65% average ILS fund return is the second worst performance for the month on…
Read MoreCalifornia Wildfire Fund seeks reinsurance renewal, program expansion
The California Wildfire Fund, which was established last year to back some of the wildfire liabilities related to utilities operating in the state, will go back to the reinsurance market to seek a renewal and an expansion of its first program for 2020 and beyond. The California Wildfire Fund was set up to provide a…
Read MoreLancashire expects continued risk pricing improvements: CEO Maloney
The insurance and reinsurance market looks increasingly disciplined and as a result Lancashire Holdings has taken some opportunities to grow in the first-quarter and expects this discipline to persist, driving further improvements in risk pricing, CEO Alex Maloney said today. Lancashire Holdings reported that it has set up a reserve of $35 million for potential…
Read MoreTonga gets parametric disaster insurance payout for cyclone Harold
The Pacific Island nation of Tonga is to receive a $4.5 million payout from its parametric disaster insurance policy with the Pacific Catastrophe Risk Insurance Company (PCRIC), the largest payout to date from the regional catastrophe insurance facility. The Pacific Catastrophe Risk Insurance Company (PCRIC) is a regional catastrophe insurance platform that provides governments of…
Read MoreMarkel invests $90m in CATCo fund to accelerate investor redemptions
Markel Corporation has put some of its own money behind the running-off of its retrocessional reinsurance investment manager Markel CATCo, investing $90 million in one of the CATCo funds in the first-quarter to boost capital available to fund investor redemptions. Markel has repeatedly shown its commitment to ensuring investors in the catastrophe loss stricken Markel…
Read MoreSwiss Re P&C businesses takes $476m Covid-19 charge
Swiss Re, the Zurich headquartered global reinsurance firm, has fallen to a group net loss of -$225 million for the first-quarter of 2020, after taking a pre-tax charge of $476 million for its property and casualty businesses due to the Covid-19 pandemic. Swiss Re has set aside a considerable reserve for the initial expected claims…
Read MoreNavigating COVID-19 And Its Aftermath
As the federal and state governments discuss plans for “reopening the economy,” it’s important to recognize and plan for the fact that the impacts of the virus and our responses to it will be playing out for some time to come. Were auto insurers too quick to give back? Despite record-low vehicle miles traveled, Digital…
Read MoreSome Ways to Think About Virus’s Long-Term Impact on Insurer Profitability
How will the COVID-19 pandemic affect auto insurers in the longer term? No one knows for sure, of course, but a new McKinsey study provides a framework for considering the question. Fewer people are driving due to business closures and work-from-home practices. This could lead to fewer accidents and claims – but evidence suggests severity…
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