Trading Risk January 2019
Assets under management fell by around $5bn.
ILS broker-dealers expect 2019 cat bond issuance to range from $7bn to above $10bn.
The crucial thing for the industry now is that the nuances of the lessons from 2017-2018 are heard.
The fund manager’s scarce capacity contributed to a generally difficult retro renewal at 1 January for buyers
A decrease in capacity following last year’s losses is thought to be one of the largest drivers of the rate increase.
Due partly to loss creep from Irma, ILS losses have been eked out throughout the year.
There was also evidence of one investment manager renewing its interest in the asset class.
AIR Worldwide put the direct losses from the incident at between $200mn and $600mn.
A key question is whether retro dislocation will spill over into reinsurance renewals.
The JLT index is below levels recorded in 2016 and around 30 percent below 2013 benchmarks.
In the US, renewal results varied widely and wildfire losses were a subject of focus.
Newer vehicles found it harder to get going as sidecar sponsors struggled to hit their fundraising targets in the January renewals.
The final couple of months of 2018 brought further pain for sidecar investors.
It could take years to determine whether or not PG&E is responsible for the 2018 wildfires.
RenaissanceRe’s funds platform has taken significant losses.
People moves in the industry in the past month.