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Analysis

  • Capital market reinsurance capacity could rise by one third over the next three years to provide $57bn of limit by 2016, GC Securities estimated in a recent new Clear Path Analysis ILS market report.
  • Reinsurance programme restructures from two very different buyers in the lead-up to the key mid-year wind renewal have provided early evidence of an expected increase in participation from alternative providers in the traditional open market for US cat reinsurance.
  • Niklaus Hilti, ILS manager at Credit Suisse - the second-largest operator in the ILS fund sector - said last year that reinsurers trying to take on the funds management business "all think this is El Dorado".
  • Swiss Re now ranks 2011 ahead of 2005 as the costliest catastrophe year ever for insurers, according to the reinsurer's latest Sigma report.
  • The ILS market is maintaining discipline even as strong demand pushes down pricing, participants at the inaugural Sifma Trading Risk roundtable argued.
  • Dion Williams from law firm Taylor Wessing explores some of the issues investors in the latest generation of sidecars should be aware of
  • Reinsurers are likely to pursue third party capital structures with longer-term horizons such as cat funds or permanent sidecars in 2013, while the number of temporary, opportunistic sidecars looks set to diminish, a panel of experts agreed at the annual Sifma ILS conference.
  • The future of the Texas Windstorm Insurance Association (TWIA) is looking increasingly uncertain as the US residual insurance market heads toward the reinsurance renewal season.
  • The ILS market's track record does not yet reflect the true "tail risk" nature of the asset class, research firm Conning warned in a new report on the market.
  • Reinsurers provided a varied account of the 1 January renewals as they reported their 2012 results, with the most bullish putting US rate movements at +5 percent while others suggested that rates were down
  • Although significant institutional capital may be sitting on the "sidelines" of the alternative reinsurance market other factors are preventing more pension funds from being attracted to the space, fund advisers say.
  • Reinsurers such as Everest and XL have said their expansion into funds management would not cost their existing investors, as analysts quizzed them during the February reporting season on how these moves would affect their business.