Trading Risk March 2019
The changes in insurer appetite to participate in the Florida Hurricane Catastrophe Fund and new guidelines from ratings agency Demotech could create opportunities for the ILS market.
New aggregate demand from Japanese cedants may also present opportunities for ILS markets.
Warm winter sun might have helped Miami’s case for bringing ILS folks to the city for one of its annual conferences a couple of weeks ago.
New registrations are expected from the ILS market.
As the first quarter drew to a close, cat bond sponsors continued to test the market’s appetite for new deals.
Data on ILS returns from Mercer ranks the industry’s 2018 performance as the second-worst after 2017, and only just better than that of 2011.
PGGM has hit its target of investing 2.5 percent of total funds in ILS for the first time since it began allocating to the sector in 2006.
Massachusetts Pension Reserves Investment Management (MassPRIM) appears to have lifted its allocations to ILS managers Aeolus and Markel Catco for 2019, despite taking losses in its first year of investing in 2018.
Stone Ridge’s reinsurance interval fund fell to $5.02bn of assets by early March, after an increase in investor redemption requests in its latest quarterly buyback.
Reinsurer-owned ILS managers reported mixed outcomes in terms of assets under management (AuM) in their Q4 results.
The continuing decline in UK life expectancy rates, evidenced by new data updated for 2018, may increase the affordability of pension de-risking, according to experts.
One of the biggest evolutions in the ILS market has been the move away from a hedge fund investor base to a more permanent capital base, according to RenaissanceRe managing director Chris Parry.
Plans to launch a vehicle that is both an ILS fund and insurance transformer are being reviewed by the Guernsey regulator, Carey Olsen partner Christopher Anderson revealed at We Are Guernsey’s ILS reception in London last month.
Massive demand for cyber insurance could be an opportunity for the ILS market to expand, AIG president and CEO Brian Duperreault said at the Sifma IRLS conference in Miami.
Cat bonds are becoming a “primary area of focus” for investors after faring well amid two years of catastrophe losses, AlphaCat CEO Lixin Zeng said at this year’s Sifma IRLS conference in Miami.
Florida insurers should have more of a stake in managing the claims process, the Secquaero CEO said.
Some primary insurers are scaling back or withdrawing from offering Californian wildfire cover after two years of record losses, sister publication The Insurance Insider reported.
There is uncertainty around whether it will ultimately be the ILS market or the traditional reinsurance market that drives wildfire re-pricing, panellists said at the Sifma IRLS conference in Miami.
The impact of Hurricane Irma loss creep is coming to the fore ahead of the June renewals.
Both houses of the state legislature are eyeing up reform of attorney fees involved in litigated insurance claims.
Q4 loss creep from Hurricane Irma averaged 25 percent amongst the state’s five listed insurers.
People moves in the industry in the past month