Insurance

Three outstanding tranches of catastrophe bond like notes have all had their maturities extended again given the risk of losses to investors in these transactions, two of which are expected to be a total loss and one we cannot be sure about the future for. These are the Loma Reinsurance (Bermuda) Ltd. (Series 2013-1) catastrophe…

While the immediate economic and financial market impacts of the Covid-19 coronavirus pandemic have ramifications for investor appetite, there are longer-term reasons that ILS funds could face challenges when it comes to accepting new inflows while the virus remains prevalent. For insurance-linked securities (ILS) funds and other collateralised reinsurance investment strategies, the immediate fall-out caused…

The sudden rise in deaths in the United Kingdom due to the Covid-19 coronavirus pandemic could result in some pensions having to post more collateral against their longevity swaps, as report suggest. With some UK £90 billion of longevity swap transactions having been entered into by UK pension schemes, the increased exposure to coronavirus deaths…

City National Rochdale’s industry loss warranty (ILW) focused mutual insurance-linked securities (ILS) investment fund grew during the last quarter and saw “positive opportunities” at the January reinsurance renewals, with an expectation of the ILW market seeing dynamic conditions and improving returns. The City National Rochdale Select Strategies (CNRLX) is a mutual fund structured in the…

Australia headquartered global insurance and reinsurance group QBE has announced a range of actions being taken to shore up its regulatory capital as a direct response to the Covid-19 pandemic, including buying more catastrophe reinsurance to reduce its exposure to U.S. perils. QBE sees itself as exposed as anyone to the global Covid-19 coronavirus pandemic…

AXA Climate, the parametric specialist risk transfer unit of global insurance and reinsurance company AXA, has partnered with Dutch satellite technology firm VanderSat on a range of products to enable drought and soil moisture related exposures to be hedged. AXA Climate will utilise data sourced from VanderSat’s microwave data from satellites to derive triggers linked…

The World Bank issued pandemic catastrophe bonds, as well as the pandemic risk-linked swaps that were issued at the same time, have not yet been triggered by the Covid-19 coronavirus pandemic as the growth rate hasn’t reached the necessary level to breach the parametric trigger. No loss payment is due at this time, as the…

The month of March 2020 saw billions of dollars of economic and insured losses caused by a number of outbreaks of severe and convective weather, characterised by hail and tornadoes as well, according to Aon’s Impact Forecasting. The weather forecasting and risk modelling division of insurance and reinsurance broker Aon analysed severe weather activity in…

Here are the ten most popular news articles, week ending 12th April 2020, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish. Ten most read articles on Artemis.bm,…