Trading Risk April 2018

Elementum Advisors has launched a new commingled fund which allows its investors to participate in insurance portfolios underwritten by a select group of MGAs, Trading Risk can reveal.

Several Florida cat bonds among new second quarter ILS transactions have set tight pricing precedents that will undoubtedly be used by insurers to try to keep a lid on rate movements in the upcoming mid-year renewals.

Earlier this year, while reinsurance risk-takers were being buffeted by winter storm losses and rising wildfire and hurricane claims, another niche corner of the financial markets was experiencing its own "vol-mageddon".

Stone Ridge was a leading supporter of some of the new sidecar vehicles that emerged at January's renewal, including Sussex Capital and deals from MS Amlin and Chaucer.

Scor Investment Partners' ILS assets under management reached $1.44bn at the end of February, putting it among the half dozen managers outside the industry's top 10 players with a scale of above $1bn.

Cat bond volumes rose to $3.48bn in the first quarter, as diversifying non-US deals bolstered issuance.

First quarter returns from a group of ILS funds tracked by Trading Risk have improved year on year as the market gained ground after last year's losses.

Michigan lifts ILS; AP3 increases ILS

The latest PCS loss number for Hurricane Harvey has edged up to $17.1bn, from a prior figure of $15.7bn, sources told Trading Risk.

Trading Risk looks at where InsurTech developments are intersecting with the ILS market and why asset managers and reinsurers are encouraging these new start-ups.

ILS-backed Lloyd's syndicates all succumbed to losses and posted hefty combined ratios last year as 2017 catastrophes took their toll.

Annual insured losses from severe convective storms are expected to reach $25bn as the number of multi-billion-dollar events resulting from the peril increases, according to Karen Clark & Company.

Insured losses from winter storms rarely rival those resulting from hurricanes and tornadoes but nonetheless they can still reach billions of dollars and may make their way into the ILS market.

A group of 56 Florida homeowners' insurers reported a $407mn aggregate underwriting loss for 2017, equivalent to a 10.4 percent average hit to year-end 2016 surplus.

Reinsurers were pushed back in their attempts to increase US property rates at the April renewal, with loss-free cedants even demanding slight decreases, Willis Re said in its 1st View report.

The property direct and facultative market achieved rate increases of 20-30 percent on loss-hit US business at the April renewal, but underwriters were still nonetheless disappointed.

The oversupply of reinsurance capacity for Japanese wind, flood and earthquake perils capped any anticipated post-HIM rate rises in what turned out to be a broadly flat April renewal, according to Willis Re.

Brit Insurance's Bermuda head of property treaty Julia Henderson has left the company, according to sources.

Heritage Insurance has appointed Tim Johns as president and CEO of Hawaiian residential hurricane insurer Zephyr Insurance Company.

LGT ILS Partners has hired Philip Borgia from Aon Benfield to join its deal sourcing and analysis team, the company confirmed.

The UK's Prudential Regulation Authority (PRA) has hired former Tullett Prebon ILS structurer and originator Antonio Guevara to work on ILS.

Fidelis has appointed Alison Clarke as a senior underwriter in its London market underwriting team.

Aspen Re Americas CEO and chairman of reinsurance Brian Boornazian will step down at the end of April.

Horseshoe Group's Mike Baker has been appointed to lead the manager's new London office.

Artex said that one of its founders Peter Mullen will be re-joining the company as CEO-elect, taking over leadership of the insurance services firm from March 2019.

Roy Wright has resigned as CEO of the US National Flood Insurance Program (NFIP) to lead an industry-funded non-profit group that promotes defences against property destruction by natural disasters.

Mark James has joined CNA as reinsurance buyer after leaving his position as deputy chief ceded reinsurance officer at AIG.