Trading Risk February 2018
Markel Catco's "eye-catching" hike to its wildfire loss reserves in its December monthly report implies that the Californian disasters triggered the firm's "floating back-up" pillars, according to a Numis analyst's note.
One of the major post-HIM talking points in reinsurance circles was the question of whether there was a gap in loss estimates recognised by individual carriers and the overall anticipated industry burden.
LGT ILS Partners launched its Bermudian rated vehicle Lumen Re with $350mn of equity, according to an AM Best rating report.
Undoubtedly, prior positive returns were one of the factors that weighed with investors who supported Markel Catco's successful reload last year.
The 2017 calendar year was the costliest on record for weather events, with insured losses estimated at $132bn, according to Aon Benfield's Impact Forecasting.
Abuse of side pockets in the financial crisis - when hedge funds locked in investors to avoid having to sell off discounted assets - has made the practice less palatable in the wider financial markets.
Guy Carpenter told Trading Risk that rate increases on retro business ranged from 5 to 25 percent on a risk-adjusted basis, with pricing dependent on loss experience.
The second-largest ILS manager posted a $200mn incremental gain in assets under management in January as it said it chose not to draw down on some post-loss capacity.
ILS spreads have widened in the mid-to-high teens range after last year's losses, Swiss Re Capital Markets estimated in its latest quarterly market report.
Securis has parted ways with its head of origination Neil Strong after a significant management restructure that has elevated Paul Larrett to the new role of chief underwriting officer and head of non-life analytics.
Securis and StarStone have agreed a partnership that will expand the ILS manager's US property insurance portfolio, Trading Risk has learned.
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The sidecar market has expanded notably in 2018 as Sompo and Axis became the latest carriers to provide updates on new or expanded vehicles.
Mercer Investments principal Robert Howie said that single-digit reinsurance rate increases may be attractive to ILS investors given the performance of other asset classes.
AIG's surprise move to take over AlphaCat parent Validus continues the trend for reinsurer-affiliated asset managers to dominate M&A activity within the ILS management sector.
The strategy of Langhorne Re, the closed-ended life fund set up last month by RenaissanceRe and life reinsurer Reinsurance Group of America (RGA), will be based largely around a leveraged asset play, according to sources.
Wildfire losses had a varying impact on some of the reinsurer-affiliated ILS platforms in the fourth quarter.
Bermuda-based (re)insurer XL Catlin placed more than $500mn of new catastrophe limit for 2018 and increased alternative market retro support to more than $3bn, as ceding strategies among major carriers diverged following last year's losses.
Losses from US primary habitational and coastal hotel accounts have driven pockets of localised hardening in the US commercial property insurance market, with rate increases of as much as 70 percent for some risks.
Pricing for industry loss warranties is up by 15-30 percent on loss-affected covers, according to figures from brokers, as the market picks up after a slow start to the year.
The cumulative insured loss number from PCS for 2017 hurricane and wildfire claims now stands at $68bn, with all cat perils in the US totalling $88bn.
First quarter cat bond issuance has already reached $1.56bn after the World Bank's Latin American earthquake cat bond upsized to close at $1.36bn, according to Trading Risk data.
Hymans Robertson has hired actuary Baljit Khatra from Mercer as a risk transfer consultant.
Axis said it would combine its ceded reinsurance operations and third-party capital business into a single department as it announced a broader restructure.
Fergus Morrison is expected to join the underwriting team at Bermudian ILS manager Aeolus later this year, Trading Risk understands.
Vic Pannuzzo is to become chief executive of Artex Risk Solutions' new office in Singapore.
Former Novae direct and facultative (D&F) head Nik Lucking is to lead Barbican's new property D&F underwriting platform in Bermuda.
Aspen Insurance CEO Stephen Postlewhite has left the company, the Bermudian carrier said in a statement last month.
AIR Worldwide has appointed Roger Grenier as senior vice president of global resilience.
Floridian insurer Heritage has named Kirk Lusk as its new CFO with effect from 28 April, when Steven Martindale will step aside.
Richard Oduntan has been named CEO of Nephila Climate (NCx).
TigerRisk has hired Marc Beckers as partner and head of Europe, Middle East and Africa (Emea).