Trading Risk June 2018
Demand for retrocession is expected to be up slightly at the mid-year renewals, but with relatively little business concluded so far there is no clear outlook on how rates will hold up.
Recent developments in the sector have underscored the difficulties reinsurers are grappling with as they attempt to work ILS capital into their business model.
Senior Scor executive Paul Hertelendy is expected to take up a new role at Credit Suisse’s insurance-linked strategies team, Trading Risk can reveal.
Hurricane season is now open, but I’d argue that the persistent headwinds facing the reinsurance industry are far more challenging than anything the Atlantic may send its way this summer.
There has been a downturn in the number of Florida-only cat bonds in the second quarter of this year, with only two Sunshine State deals compared to the five issued last year, as local sponsors expanded the scope of their cover.
Willis Towers Watson has invested in a platform designed to support new managing general agencies (MGAs), sister publication The Insurance Insider reported.
ILS investors lost 7 percent on average between 30 June last year and the end of April 2018, the Eurekahedge ILS Advisers index shows.
Hatteras Funds, a North Carolina-based alternative asset manager, has launched the fifth new ILS strategy this year and joins a trend of more feeder funds being set up in the asset class.
Leadenhall Capital Partners has won a mandate to invest £80mn ($106.8mn) for the North Yorkshire Pension Fund.
Private lapse deals are on the rise in the ILS market, driven by Solvency II regulations which require life insurers to hold onto more capital for lapse risk, according to life ILS managers.
The reinsurer has raised $530.5mn of Sector Re debt since December 2017, ahead of the $492.0mn raised last year and the $394.7mn of limit available in 2016.
The average gain across a group of sidecars that remained on risk in the three months to 31 January came to 3.2 percent.
The Bermuda-listed vehicle was established with $45mn raised from investors, with the remaining $5mn coming from the insurer itself.
Axa has said that XL’s reinsurance platform and access to alternative capital were among the attractions in tying up with the carrier.
Florida catastrophe reinsurance rates crept up by 1.2 percent on average at this year’s 1 June renewal, marking the first increase in seven years, according to JLT Re.
Tropical Storm Risk (TSR) said there was a high chance that 2018 hurricane activity would fall within the lowest one-third of years since 1950.
Floridians HCI Group, United Insurance (UPC) and Heritage all spent more on reinsurance during the renewal, while Federated National shrank its reinsurance costs by 17 percent.
Hurricane Irma led to a sharp increase in lawsuits against Florida insurers in Q1 2018 compared with the same period last year, according to the Sun Sentinel.
Is the industry ready to accept new attempts to create live trading platforms?
London-based start-up Akinova is developing an electronic trading platform for (re)insurance risk and is planning to start with listing a version of an industry loss warranty (ILWs) called an “AELO” – an Akinova Event Linked Option.
June people moves in the ILS market