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Rapid growth of the cyber market suggests an increasing role for ILS, panellists said at Trading Risk Live.
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Q4 issuance will likely be robust owing to new investors and increased allocations, the CEO said. -
Assets with ESG attributes can be more profitable than their counterparts, said panellists at the Convergence 2020 conference.
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“Pass-through” tax status would help SPIs issue US-based ILS, Joanna Syroka said.
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The transaction, led by Markel Specialty, showcased a new Aon IP capital market solution.
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More seasoned trapped capital is likely to be suited to such deals.
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Schroders and Leadenhall Capital Partners have participated in a $31mn (A$43mn) fundraise for Australian life insurance provider Integrity Life.
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Clix index will provide insured loss data for all major nat cat events since 2000.
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Whiting had worked with the firm, which is planning further life ILS fundraising, since 2007.
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Aon’s former head of international catastrophe management will take up the position next September.
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All three fires are prompting evacuation orders in Napa and Sonoma counties.
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Climate variations will likely spur demand for ILS capital to help reinsurers manage peak US hurricane exposure, the manager said.
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Sally buffeted cities and town as it moved across Alabama at speeds as low as 2 mph, the modeller said.
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Year-to-date lite and private cat bond placements total $220mn, up 30% from last September.
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Collateralised capacity will retain an important role in the retro niche.
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The storm is churning at Category 4 strength in the Atlantic and could impact Bermuda after Paulette's recent strike on the island.
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July rains and typhoons Maysak and Haishen severely damaged Kyushu region, the body said.
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ILS veteran Kathleen Faries also advocated for an industry superhighway to transform the way risk is moved.
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Life-threatening storm surge is already occurring along the coastline from Alabama to the Florida Panhandle, including Pensacola Bay and southern portions of Mobile Bay.
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The insurer could have total gross losses of more than EUR500mn, according to a French publication.
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Magnani became vice president, based in London, in September.
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The pension decided to invest in ILS in 2018 allocating 1.5% of the £1.9bn fund to Securis.
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The executives also called for government-private sector partnerships to address future pandemics and other protection gaps such as cyber.
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The start-up will run three auctions on Tuesday ahead of Hurricane Sally reaching the US coast.
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The rule will allow cedants to transfer risk to a local reinsurer which will have the exclusive purpose of issuing insurance-linked securities.
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The US National Weather Service issued a critical fire weather warning for parts of Idaho, Montana, California, Nevada and Oregon on Monday.
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A much harder retro market is driving reinsurance price increases.
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Still some way off Category 1 intensity, Paulette is expected to reach the Leeward Islands on Thursday night.
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The carrier did not give a gross loss estimate, but has added $39.2mn of reinsurance cover for a second event.
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It made a 4.4% gain over the past year from its insurance holdings, and has made 7.9% per annum since inception.
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The transaction covers US wind for two seasons on a per occurrence basis.
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The online trading platform also said it had signed deals with leading brokers.
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The $59.1bn pension’s ILS allocation stands at 1.6% of the fund.
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Fund investment in ILS has dropped sharply since totalling $125.5mn in 2018.
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Covid-19 losses and other catastrophe events have exhausted the catastrophe budgets of many companies, the ratings agency said.
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Lawrence Po-Ba was hired by the firm to source capital solutions for Lloyd’s syndicates in May.
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EMEA cat rates have failed to reprice while US and Japan markets have been more reactive, the firm noted.
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The retro space is expected to move towards named peril covers as rates approach post-Hurricane Katrina levels.
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The market is also interested in more liquid cat bonds, the reinsurer said at a press conference on Monday.
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The ILS manager expects investments will have low correlation with the financial markets.
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Subrogation recoveries from 2017-18 Californian wildfire losses drive capital releases.
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A reluctance on the part of the market to innovate on the trapped issue might lead to more investment in rated vehicles.
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Karen Clark & Company models have helped revolutionise catastrophe risk management, laying the foundations for ILS capital to enter the market.
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The Swedish manager has wound up its small UCITS cat bond fund as it said institutional funds were a better regulatory fit for ILS.
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The company acts as reinsurer and shares the risk with the Natural Disaster Fund.
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The typhoon, which is expected to make landfall on the peninsula on Thursday, is being compared to the devastating Typhoon Maemi in 2003.
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The improved premium environment started to show up in returns, but Covid-19 losses are also emerging, ILS Advisers said.
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Louisiana will account for the brunt of insured losses from the Category 4 hurricane, which made landfall last month.
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Ghosh will work closely with CEO Ken Pierce to develop the two-year-old platform.
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People moves in the ILS marketplace.
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Storm surge losses are expected to remain under $500mn.
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ILWs at the $10bn mark failed to clear, as auction participants suggested losses would not reach the trigger.
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AM Best warns the coronavirus pandemic will inflate the cost of claims arising from the strongest storm by far of this year’s hurricane season.
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Insured losses from past storms in Laura's vicinity range from $13bn to $24bn, inflation-adjusted.
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Buyers and sellers are eyeing a 20% RoL, but contracts have yet to trade.
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The hurricane is forecast to make landfall on the Texas or Louisiana coast on Thursday.
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The company said it was liaising with cedants about effects of subrogation payments from PG&E.
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Marco is forecast to make landfall in Louisiana on Monday, with Laura hitting Texas by Thursday.
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A 168-hours clause limit on aggregated claims would heavily restrict insurers ability to claim for pandemic payouts.
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If Hurricane Katrina were to hit the US in 2020 privately insured losses could reach $65bn, up from $41bn 15 years ago.
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The Swedish state pension fund’s ILS allocation rose 7% to $600mn.
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The release largely stemmed from 2019 side pockets, reducing this year's remaining trapped capital by a third.
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Maturities and payouts for 2017 and 2018 events outweighed a flurry of new deals.
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The specialist ILS manager has also made a number of senior appointments.
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The sidecar's asset base has fallen by around $140mn in the past year.
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The developing world specialist insurer is looking for input from ILS funds and reinsurers.
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The climate-focused InsurTech has raised $4.2mn and signed up insurance backing from the ILS manager and Munich Re.
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He replaces Oliver Horbelt who becomes CFO of Munich Re of America.
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Losses from severe convective storms in the US were the highest since the first half of 2011.
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Nephila’s fall in AuM contributed to the trend of specialist firms shrinking, as reinsurer-backed assets were up modestly.
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Despite being Category 1 at landfall, Isaias caused storm surges from South Carolina to New York.
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Lawyers are diligent in finding avenues to bring litigation against insurers, FedNat’s CEO Michael Braun told analysts on Thursday.
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Major losses from natural catastrophes were comparatively low at EUR167mn for the quarter.
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The loss-hit fund’s NAV has increased more than five-fold to $40 a share since the stock merge.
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Reports of flooding in eastern US states as millions were left without power.
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The company confirmed it had bought $500mn of additional catastrophe aggregate.
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Some managers also had to increase prior-year reserves, Eurekahedge ILS Advisers said, but June returns still came in stronger than historical levels.
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AIG turned a $2mn investment loss from its small stake in the ILS manager's funds.
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Among other roles, the industry veteran will advise agriculture insurance start-up Agritask.
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Former Axa XL property treaty head Catherine Turner will co-lead the unit with Richard Evans.
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The Japanese pension fund now dedicates 20 percent of its portfolio to alternatives, which include an ILS allocation.
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The UK is seeking to address the perception that local ILS bureaucracy is "onerous and costly", the LMG-commissioned London Matters report said.
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Collateralised re and sidecars are more likely to become subject to legal disputes around wording, the agency said.
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Canada Life, Munich Re and Swiss Re have covered the pension liabilities of 200,000 pensioners in the Netherlands.
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The parametric trade for a European asset owner in the advertising industry provides cover according to wind speeds near billboard locations.
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Around one-eighth of the Corporation's estimate related to property reinsurance specifically.
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The ratings agency said positive innovation efforts were partly offset by high dependency on retro.
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Some argue that what appears to be a stepping back by Japanese investors may just be a pause as investors switch managers.
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The carrier is asking the board to agree a premium outlay of $145mn for the 2020 hurricane season.
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The Italian insurer will target buyers in the agriculture and food sectors, among others, through the parametric partnership.
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The deal will be Legal & General’s first time simultaneously insuring US and UK pension liabilities.
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Both deals priced at the top end of initial guidance ranges, making them the highest-paying cat bonds the CEA has completed in recent years.
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With a target range of up to EUR100mn ($108.3mn), the PartnerRe stake is one of the fund’s smaller ILS allocations.
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The assets are divided between the company’s pension fund and a post-retirement benefit plan.
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The association is planning to issue $200mn of Alamo Re II notes later this year.
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The ILS market is among the leaders in holding firm on exclusions.
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The earthquake insurer returned to the traditional market for cover, citing less favourable ILS pricing and terms and conditions.
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The university bought cover for the 2017-2020 academic years, paying $424,000 a year in premiums, CNBC reports.
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The insurer's Q1 cat losses dropped by more than two thirds.
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The carrier took a separate EUR220mn charge connected to Covid-19 losses.
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Based in London, Ben Stone will advise clients on longevity swaps as well as other strategies.
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Losses stemmed largely from February hail, tornado and wind events in the southeastern US.
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This comes after Stone Ridge, one of the firm's third-party providers, reduced its sidecar holdings.
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Former Securis executive Lawrence Po-Ba will focus on sourcing capital solutions for Lloyd’s syndicates.
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The broker's total insured loss estimate spanned $11bn to $140bn, depending on the recovery from Covid-19.
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Trapped capital will become an issue in the coming months, CEO of Lancashire Capital Management Darren Redhead said.
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The pension scheme made low single digit returns on ILS holdings with Aeolus and Nephila in 2019.
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The Markel co-CEO said the firm was warehousing retro risk until it raised capital for new platform Lodgepine.
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Investment case is the strongest in more than half a decade, but competition for new inflows is still strong in the buyers’ market.
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The bond priced at the top end of forecasts and 16 percent above initial targets, according to sources.
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The Aon Reinsurance Aggregate (ARA) stock index fell by 46 percent in the five weeks to 23 March due to Covid-19.
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The carrier has chosen Singapore’s ILS regime to issue the transaction.
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The major buyback was completed before the Covid-19 pandemic sparked a market crisis.
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Pricing on the transaction is up 12 percent, according to sources.
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The marketplace said $87mn in capacity was offered in the past week's auction.
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A survey finds that 64 percent of institutional investors are not changing their private market allocations.
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The Teacher Retirement System of Texas has increased its allocation amid continuing losses.
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Insurer capacity may reduce and their pricing may become more conservative.
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Endowments and family offices have been showing interest in the asset class.
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The Ivy vehicle will co-invest on deals with Global Atlantic.
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Insurance capacity is limited for pandemics, said Swiss Re’s Edouard Schmid.
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The firm revised its 2019 estimate for insured disaster losses up by $4bn but kept Typhoon Hagibis under $10bn.
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Post-Brexit, there would be scope for legislating away from the Solvency II position, the lawyers said.
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The deal marks the third time the bank has brought operational risk to the ILS market.
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The MGA insurance business returned an underwriting profit of $1.4mn having made a loss of $75.1mn in 2018.
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The ILS market has used every reversal as a base for its future growth and this should happen again after Covid-19, the firm argued.
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The Swedish state pension fund currently allocates to three ILS managers: Fermat, Credit Suisse ILS and Elementum.
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The Brit subsidiary becomes the seventh specialist ILS member of the industry group.
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The syndicate tripled its cyber premium income from a low base.
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Pre-Covid-19 mortality risks generally provided low single-digit returns, but significant repricing is underway.
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Scor said it was eager to start marketing the transaction again within the next month when market conditions improve.
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Munich Re will provide initial capacity but ILS investors have been approached for future cover.
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Mid-year is the next major possible exit date for ILS investors in illiquid strategies.
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The three ILS-backed syndicates at Lloyd’s narrowed their losses in 2019.
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Credit Suisse has been reshaping its ILS team after transferring reinsurance underwriting to its Bermuda-based platform Bernina Re.
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The pension plan sold equities in late 2019 to accommodate ILS and other asset classes, chief executive Jim Keohane told Canadian media.
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Catastrophe losses saw a 31 percent hit to the fund's 2019 portfolio with attritional losses coming in more than three times as high as budgeted.
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The Hong Kong government is accelerating introduction of its ILS regime to boost its financial services industry.
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The Diversified Alternatives fund will invest in ILS deals and alternative lending, real estate and other sectors.
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This is the second Asagao deal, following a two-year $69.9mn transaction issued last September.
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The company’s previous two Atlas deals were completed using the UK’s new ILS regime.
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Chang helps manage the fund’s ILS portfolio, reporting to ILS director Philippe Trahan.
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Pricing has moved to the top of the guidance range, sources said.
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Cat losses almost halved last year compared with 2018, which the carrier said was evidence of its ongoing reduction of cat risk exposure.
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The ratings agency also said ILS capacity would ‘hold the line’ on returns following catastrophes.
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Michael Steel will be based in the RMS London office and report directly to CEO Karen White.
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Timings, penalty fees and dual treatment of attritional claims are among the measures under consideration.
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The senior underwriter had worked at the firm since 2015.
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The small gains come as the fund makes payments to investors.
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Isosceles Re will run alongside Cerulean Re, which was set up in 2017 to manage private ILS deals.
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The company will delist from the New York Stock Exchange as the listed ILS fund sector heads for closure.
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Private ILS strategies largely escaped losses from the Australian wildfires, ILS Advisers said.
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GWP was up 53 percent in the last quarter, reflecting the growth of the InsurTech subsidiary.
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The approaching three-year statute of limitations on Irma claims could prompt another spike in AOB issues, warned FedNat.
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The losses include those of the parent company as well as Monarch National Insurance Company.
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Hiscox expects its ILS AuM to drop in 2020 as one of its investors indicated it will reduce its ILS commitments.
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The World Bank’s pandemic bond is expected to partially pay out as deaths surpass trigger points.
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The carrier noted that the nat cat loss figure for 2019 was EUR2.05bn, almost double that of the year before.
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Scor posted a fourth-quarter operating loss of EUR29mn ($31.7mn) for its P&C unit, which was almost two thirds down on the prior-year quarter’s loss.
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The fund also lifted the size of a new mandate to Hudson Structured Capital Management as it withdraws from Nephila’s loss-making Palmetto fund.
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The $1.28bn fund allocates assets across multiple alternative strategies.
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The initiative, which has been evaluated by ESG ratings and research provider Sustainalytics, is part of Trieste-based Generali’s sustainability strategy.
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Chris Conway joins TigerRisk from Neon Underwriting Bermuda, where he was senior vice president.
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As of 30 June last year, the fund had deployed $40mn of its committed funds to HSCM Bermuda.
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The (re)insurer should benefit from profit commission later in the year, chief executive officer Darren Redhead said.
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Losses in Germany will account for around 50 percent of the total loss, RMS said.
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The deal's spreads are in line with those on the 2019 FloodSmart deal, with slightly higher multiples of premium to risk.
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Proceeds of the Mexican parametric transaction will be used to finance sustainable development projects in a number of countries.
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Demand for the transaction, which doubled in size during marketing, demonstrates a renewed appetite for Florida risk this year on the cat bond market.
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There is room to scale up existing risk transfer pilots, said Dfid’s Nick Dyer at Aon's Collaborating to Close the Protection Gap conference.
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Pricing slipped to the lower ends of the guidance ranges as the reinsurer upsized a hurricane tranche of the trade, sources said.
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The CEA expects new revenue bonds could reduce its risk transfer needs by $300mn.
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The transaction is down on the $562mn Radian secured from Eagle Re last year.
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The occurrence and aggregate transaction will replace maturing and loss-impacted deals for the carrier.
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The investment comes as the Indiana Public Retirement System exited Nephila’s Palmetto fund in pursuit of a more diversified ILS strategy.
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Bernard Van der Stichele will head the pension fund’s new ILS portfolio.
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The cat bond could help lower barriers to collateralised participation in primary business, says the ratings agency.
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The reinsurance covers policies written by the insurer in from January to August 2019.
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The pricing targets imply a minor uplift in the premium multiples on offer.
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The manager said Irma deterioration pushed its 2017 loss out by 1 percent, taking it to 65.9 percent.
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Fee income from capital partners nearly doubled to $80.2mn in 2019, up from $48.5mn in 2018.
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The political boards will consider future funding structures for the insurer of last resort as well as a possible merger with the Texas Fair Plan.
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The longevity swap is the second-largest transaction ever completed in the UK after the £16bn BT Pension Scheme deal in 2014.
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The cat bond covers hurricane and extreme mortality risks, according to sources.
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Pricing dropped 6 percent from the midpoint of the initial range to reach 9.75 percent.
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The Floridian carrier has returned to the cat bond market for a third time, adding wildfire, earthquake and winter storm perils to its latest transaction.
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Aetna Life achieved its lowest coupon ever on the Class A tranche.
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The current death totals do not suggest the transaction is under immediate threat.
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The transaction remains popular with investors given that it has never had a loss and is a diversifier, sources said.
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Opportunities are likely to open up for blue-collar schemes as reinsurers participating in swaps seek to diversify, according to Willis Towers Watson.
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The deal took 2020 cat bond lite volumes to $84.5mn.
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ILS broker-dealers’ forecast cat bond issuance will range from $8bn to $11bn this year, reclaiming ground lost in 2019 when annual volumes plummeted more than 40 percent year on year.
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Bermuda carrier tactics highlight increased reliance.
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Reinsurers pegged 2019 nat cat losses 23 percent lower than the 10-year average, but prior-year disasters created headlines.
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Sidecar capacity is likely to be down by at least 20 percent year on year after a renewal in which ILS investors have pulled back significant capacity, sources estimated.
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Cat bond fund returns rebounded in 2019, with widely divergent experience among ILS funds investing in private instruments.
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The exposure to this transaction across private ILS strategies varies from 1.7 percent to 1.9 percent of November's portfolio, the manager said.
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The most likely global risks relate to climate change and environmental issues for the first time, according to the WEF’s 2020 Global Risks Report.
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Carey Olsen has appointed Michael Frith as senior counsel, managing director.
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Alternative capital made up $60mn of the capacity Tremor priced last year, the company announced.
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Claims from the catastrophe have increased to 13,750 up from 10,550 at the end of last week, the ICA told local media
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Over the past decade, the cat bond market has produced an average annual return of 6.38 percent, and 7.48 percent for 2019, Aon has calculated.
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The average cat bond yield was 7.48 percent by year end as cat bond issuance picked up.
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As its Interval fund has continued to shrink, the manager has taken in private fund assets for both cat and non-cat risks.
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The funds raised for Eden Re II this renewal have reached $285mn down from $300mn last year.
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The deals include a $30mn aggregate and a $110mn all-other-perils deal.
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The deal may replace a $55mn sidecar listed this time last year, which sources said provided reinsurance for a short-tail property insurance book.
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The sums raised for a Cayman Islands fund are in line with expectations that the firm would have under $200mn to deploy in the January renewals.
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Hiscox sold the parametric cyber cover to an as-yet-undisclosed buyer.
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The retro transaction priced below the target range, according to sources.
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Hannover Re issued seven Seaside Re cat bond lites totalling $74.5mn yesterday, following $77mn of notes at the end of 2019.
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Both tranches of the transaction priced at the bottom of the guidance range.
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The bond has been launched with the same initial price guidance as the 2018 and 2019 issuances.
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Peak Re was able to increase sidecar cover for its global property reinsurance risk portfolio amid stalling ILS capacity this renewal.
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Last year Axis raised $230mn of Alturas Re sidecar support across three deals.
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The transaction brings 2019 cat bond lite issuance to $799.5mn, according to Trading Risk records.
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Pricing across the deal has slipped 1.5-3.2 percent, according to sources.
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Insurers ceded 52 percent of gross losses in 2018, an increase of 2.4 percent on the 2017 total.
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This latest deal takes 2019 cat bond lite issuance to $749.5mn, below the $973.7mn total recorded last year.
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Pricing on the parametric US earthquake deal dropped by 2-7 percent during marketing, according to sources.
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More than 830 homes and 62 facilities have been destroyed in NSW so far this fire season.
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Reinsurance broker BMS has expanded its US reinsurance analytics team with three new appointments.
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Pricing on the quake deal dropped 3-7 percent across its two layers, according to sources.
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The two Credit Suisse vehicles are expected to have grown their premium base by 15-35 percent at year end 2019 compared to 2018, AM Best said.
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Managers at the Aberdeen Diversified Income and Growth Trust fund said other ILS opportunities did not offer a satisfactory risk-return combination.
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The majority of the longevity risk was reinsured by Hannover Re.
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Amid an uncertain year for the life insurance segment, mortality and value-in-force transactions remained the mainstay of life ILS managers as fundraising tapered off after a 2018 growth spurt.
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RenaissanceRe CEO Kevin O’Donnell estimated the market took $12bn of losses and brought in $20bn of new capital in 2017.
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Willis Towers Watson has tipped that greater focus will be drawn to ILS domiciles and structures in 2020 amid an “unusual amount of innovation” from existing and emerging jurisdictions.
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The settlements must be approved by California’s governor as well as court judges to enable the utility to exit.
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Australian investors were among the ILS pioneers and some speculate that consolidation of Australian pensions into mega funds could help grow the industry’s local presence further.
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Overall reinsurance capacity is becoming harder to source for InsurTechs.
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The Colorado State University experts had previously questioned whether an active period which began in 1995 had ended.
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Hong Kong announced its intention to enter the ILS space last year, indicating it would allow SPVs to be set up in the territory.
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In its first public cat bond since 2013, the firm joins peers in seeking aggregate retro cover.
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The Denver-based health insurance company plans to push individual and small group health insurance plans.
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The insurer also said that the Hagibis claims count was lower than anticipated at this stage.
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The association has increased its ultimate loss figure for Hurricane Harvey to $1.7bn, up from its May estimate of $1.61bn.
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Approval of the settlement agreement puts PG&E on a path to emerge from Chapter 11 by 30 June, which is the deadline to participate in California’s wildfire fund.
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Arthur Jones succeeds Alastair Barbour who in February indicated his intention to retire from the board towards the end of this year.
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As part of the deal, 1347 PIH received five-year rights of first refusal to provide reinsurance on up to 7.5 percent of FedNat’s catastrophe reinsurance programme.
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Artex reserved for an 8 percent loss to the $18mn aggregate retro transaction, a BSX note said
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Late November flooding in parts of southeastern France and northwestern Italy follows an active year for weather losses in Italy.
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A busier cat bond market is expected while a loss of investor confidence is squeezing the collateralised and sidecar markets, said managing director of GC Securities Des Potter.
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Genworth Mortgage Insurance CEO Rohit Gupta said market response to the transaction had been strong.
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Aon Securities CEO Paul Schultz said the platform fitted in between collateralised reinsurance and syndicated cat bonds.
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EWI provides services for captives and mutual insurance companies as well as run-off and legacy solutions.
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Incurred losses from Hurricane Michael have risen another 4 percent to reach $7.4bn, according to the Florida Office of Insurance Regulation.
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The buy-in extends an £800mn longevity swap done with Legal & General.
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The former Swiss Re executive joins after the firm's former head of life left in late 2018.
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Phil Kane has been appointed senior credit officer, reporting to CEO Luca Albertini.
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The change will bring the vehicle’s name and brand into line with the rest of the Lancashire Group, the company said.
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The carrier expects Typhoon Hagibis to cost it EUR200mn.
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The carrier said it anticipated larger losses from Typhoon Hagibis in Q4 than those generated by the Q3 catastrophes.
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Cat losses and higher reinsurance ceded premiums were partially offset by improved underwriting margins and continued discipline over operating expenses, the carrier said.
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Lodgepine departs from the pillared structure of Markel Catco, Markel co-CEO Richie Whitt said.
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2019 year to date performance returned to positive territory for the Eurekahedge ILS Advisers index but the firm warned the next two months could be “challenging”.
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The New York-listed Blue Capital Reinsurance Holdings posted a net income of $1.7mn for the first seven months of 2019, as the run-off process continued.
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A group of ILS funds tracked by Trading Risk produced more robust returns in Q3 compared to last year’s third quarter, despite Typhoon Faxai and Hurricane Dorian.
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A drive to offer standardised Lloyd's ILS products must be balanced against the need to be flexible, market participants have said.
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Gross written premiums (GWP) for the reinsurance and ILS division increased by 6.1 percent for the first nine months of the year to reach $823.6mn.
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AIG's reinsurance subsidiary has just $155mn of losses to retain before triggering retro recoveries.
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This came as the deal priced at the bottom of the initial range at 515 basis points (bps), according to sources.
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The latest issuance brings the cat bond lite total to $739.5mn for the year.
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Parent asset manager Apollo is set to nearly double its stake in the life insurer.
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The manager bought back and cancelled 900,000 ordinary shares worth $180,000 at the end of last week, as the process of winding up the business continues.
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Mark James assumes leadership of CNA’s enterprise risk management function and continues to lead the global reinsurance team.
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The facility plans to scale up, allowing more members to join as well as increasing cover for existing members.
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AIG had $550mn of cover for Japanese losses, analysts at Credit Suisse noted.
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The transaction sits above an earlier ILS deal from the French insurer.
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A PCS update on Irma had led to a full loss on two contracts, the fund said in an SEC filing.
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Meanwhile, insured losses from Typhoon Faxai will approach $5bn, according to the September Global Catastrophe Recap.
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The updates provide the marketplace with more quoting flexibility, according to CEO Sean Bourgeois.
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Severe, unpredictable weather is becoming more frequent, said the Insurance Bureau of Canada’s Amanda Dean.
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Cedants are turning to the ILS market for solutions, says the broker’s Catherine Mulligan.
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Horseshoe CEO Andre Perez and other employees will continue to operate from their present locations, reporting to Artex CEO Peter Mullen.
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The acquisition will not impact the ILS fund manager, managing partner and president Richard Pennay has said.
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Cerulean Re has now transacted deals totalling $167.9mn this year.
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The RBS pension scheme increased its allocation to insurance in 2018, including catastrophe and life insurance risks, according to its most recent annual report.
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Pacific Gas & Electric Company has inked its $11bn wildfire insurance subrogation claims deal and criticised an alternative plan put forward.
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The lift in ILW pricing seen at mid-year has been unilateral across most products and was a further increase on the 2018 pricing correction following 2017 events, according to Aon.
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Aon’s plan to launch an auction platform in time for 1 January 2020 suggests a struggle is underway in the reinsurance space for the position of auction technology market leader.
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Typhoon Faxai losses are unlikely to have a significant impact on the ILS markets, based on current industry estimates.
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ILS investors are unlikely to foot much of the bill from Hurricane Dorian due to the market’s low exposure to Caribbean business, according to sources.
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The allocation to ILS was 5.4 percent of the fund’s $7.4bn assets at the end of 2018.
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Michael Halsband was formerly a partner at Drinker Biddle & Reath.
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Swiss pension schemes hold just over $7bn in the asset class as allocations edged up to 1.1 percent.
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The carrier launched the retrocessional ILS fund this month with Andrew Barnard as CEO.
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The storm is expected to track approximately 100 miles north of the island with hurricane conditions expected in Bermuda on Wednesday night and Thursday morning, the NHC said.
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Modelled average annual loss is less than a quarter of the economic estimate, meaning more needs to be done to close the protection gap, the modeller said.
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The country, which joined ARC this year, will receive a payment of $738,835.
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Participants predicted the rate pressure that has been centred on Japan and Florida would have a broader spill-over next year.
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The potential for insured catastrophe losses has increased at an “exponential” rate since the 1970s, the broker said in a report.
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The deal brings 2019 cat bond lite issuance to $636.5mn, according to Trading Risk data.
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Estimates of insured losses from Faxai are at around $3bn but sources were cautious given Jebi was initially put at the same level but became a $15bn-plus loss.
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Nationwide, USAA and Allstate are other national carriers with significant property catastrophe market shares in the states.
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The storm killed one person and damaged property.
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Karen Clark & Company said Bahamian losses from Hurricane Dorian will reach $7bn including both insured and uninsured damages.
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This is the second time Senegal will have received an ARC payout and brings the total disbursements to $38mn.
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The new Alternative Capital Partners entity unites the resources and capabilities of both teams, Swiss Re said.
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Transfer of Mexican risk has been constrained by the absence of a reliable and independent loss aggregation tool, PCS said.
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The investment will be ploughed back into the reinsurance marketplace to enhance quoting and management capabilities.
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Trapped capital is becoming a more important consideration in pricing of collateralised reinsurance contracts, a report said.
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Devastating winds and storm surge will continue to affect the northern Bahamas for several more hours, the National Hurricane Center said.
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The brouhaha over trapped ILS capital has led to the question of whether alternative collateral management solutions will emerge.
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The threat will give the market a chance to expand and increase rates, the analysts said.
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Trading Risk looks at the dominant themes that the ILS market will be discussing at the 63rd Monte Carlo Reinsurance Rendez-Vous in September.
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UK pension funds are acting quickly to get longevity swaps over the line by the 31 October Brexit deadline.
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The North Yorkshire Pension Fund upped its ILS investments while the BBC Pension Scheme pulled back.
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ILS funds posted gains in June and July, clawing back four consecutive months of declines, according to the Eurekahedge ILS Advisers Index.
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Graham joins from Lancashire Insurance Company where he was operations and claims manager.
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Takashi Goda was head of Japan for Swiss Re until 2014.
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The sidecar investor is still working through a backlog of investor redemptions.
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Tropical Storm Dorian is due to hit Puerto Rico later today.
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Improvements to models and peril exclusions are expected to encourage growth once losses have been settled, the ratings agency said.
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The second payment from its cash fund is in addition to $20mn approved in February.
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The fund now has £159.4mn allocated to ILS through Leadenhall Capital Partners.
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The fund has had to set aside more cash in side pockets after its mid-year 2018 portfolio rolled off risk.
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The convergence of the insurance, reinsurance and ILS markets is set to continue, the ratings agency said.
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This will be the first share buy-back since the firm’s investors voted for the fund to go into run-off.
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The Insurance Council of Australia has also estimated insured losses resulting from the flooding at A$1.2bn.
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The fund can meet the demand for ESG investments while at the same time providing a commercial return, advisors Global Parametrics said.
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The reinsurer’s combined ratio was 101.1 percent for Q2, down 2.3 percentage points from the prior-year period.
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Reinsurance buyers with a relationship-driven approach have come through 2019 renewals in better shape than transaction-based cedants.
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Tropical Storm Risk predicts 13 instead of 12 named storms due to a change in trade wind speeds.
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Further Jebi and Michael loss creep impacted private ILS contracts and some funds’ side pockets.
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Demand for longevity swaps has increased as Brexit approaches, the reinsurer said.
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Two major hurricanes are expected this season while the forecast for hurricanes has increased from six to seven to account for Barry.
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The insurer sounded a cautious note on cyber ILS plans after previously saying it had done some test deals.
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The follow-up investments take its overall ILS allocation to up to $950mn, as it put in place mandates to respond to higher rates.
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Terms of the deal were not disclosed.
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Developments this year indicate third-party capital will be a disciplined participant requiring adequate risk-adjusted returns, Axis president and CEO Albert Benchimol said.
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The platform has issued $175mn so far this year, up from $151mn in 2018.
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The Floridian insurer also transferred $2.9mn of tornado losses to reinsurers in the quarter.
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The growth contrasted with a 2 percent slide in collective assets among the top tier of ILS players.
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As interim administrator of the fund, the CEA will approve measures to sign up risk transfer services.
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The issuance brings Eclipse Re’s annual total to $150mn, just under the $151mn it issued in 2018.
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The insurer increased its reinsurance spend by 10 percent in the quarter after adding $400mn top-layer coverage.
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“We're not trying to grow for the sake of growing,” Everest Re’s reinsurance chief executive John Doucette told analysts yesterday.
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He will take on the role of client and operations director based in Bermuda.
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The ILS fund, which contains insurance and reinsurance risk, continues to attract investors.
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BlueOrchard manages the InsuResilience Investment Fund which provides access to insurance in the developing world.
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Sean Bourgeois, founder and CEO of Tremor, expects the risk market to follow a path similar to that taken by the advertising industry.
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PGGM senior investment director recognised for her exceptional contribution to the sector.
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Using cat bonds alongside other funds to manage the response to pandemic threats means a more cost-effective overall response, ILS participants argue.
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Former Swiss Re and Rewire executive Vincent Myers is hired following the departure of ILS vice president Livingston.
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No target or timeline has been set for the World Bank transaction but work is underway, sources said.
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The plan would have “enormous unintended consequences”, the industry association federation says.
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The transaction, targeting up to $15mn, would use volcanic plume heights as a trigger.
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The asset manager has been forced to pare back sidecar allocations following last year’s disaster activity, and pay out a stream of redemption requests.
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The firm launched last year with $50mn of capital from a pension plan investor.
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The carrier has made refinements to the vehicle’s portfolio mix and the structure mix, Liberty Mutual told Trading Risk.
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The target size shrank from 2018 after the insurer revised the renewing portfolio, with the Bermuda-listed component dropping by $143mn.
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Aon and InsurTech startup Etherisc partnered with Oxfam and Sri Lankan insurer Sanasa on the scheme.
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The bond priced below the lowest end of the initial guidance.
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Winners were recognised at the 11th Trading Risk Awards ceremony, held in London last night.
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PGGM senior investment director Eveline Takken-Somers was named the outstanding contributor of the year at the Trading Risk Awards held in London last night.
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The California Earthquake Authority’s total risk transfer limit has almost doubled since 2015.
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Only around half the $3.4bn of cat bonds that have matured this year so far have been renewed, with a further $3.3bn of deals set to expire over the rest of 2019, according to Trading Risk data.
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Some of the largest Florida carriers increased their reinsurance limits at this renewal, but they were able to keep control of overall expenditure by opting for more Florida Hurricane Catastrophe Fund (FHCF) protection.
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All insurance has a social purpose but covers for lower income countries should probably be considered more impactful transaction than Florida coastal risk.
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Stone Ridge Asset Management has once again been forced to ration redemption requests at its interval fund after investors sought to cash out nearly a quarter of the fund’s share base, Trading Risk can reveal.
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Swiss Re has increased the capacity of its Sector Re sidecar to $670mn, despite a tightening of the wider retro market.
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Swiss funds active in ILS recorded stable or slightly increased allocations after 2017’s losses.
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Philippe Kremer previously worked for Swiss Re Capital Markets, most recently as director and deputy head of ILS structuring Americas.
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The World Health Organization said the Ebola outbreak in the Congo has spread to Uganda, putting the deal at risk of triggering.
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Congresswoman Maxine Waters said the National Flood Insurance Program has experienced twelve short-term extensions resulting in brief lapses since fiscal year 2017.
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This year’s cover is less than the 2018 cover, which was $2.6bn.
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May redemption requests worth about 25 percent of the fund were stable on levels sought in February.
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Elementum is a “well-positioned business in an attractive sector,” the asset manager said in a Securities and Exchange Commission filing.
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The deal comes hard on the heels of the North Carolina Insurance Underwriting Association’s $450mn cat bond completed in February.
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The reinsurer has expanded its retro sidecar by more than a quarter from the previously estimated size of $531mn.
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An existing longevity swap held by the Rolls-Royce UK Pension Fund was restructured as part of the transaction.
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The PK SBB scheme took a 4.5 percent gain from its ILS portfolio last year, as it and a number of peers reported slightly increased allocations to the sector.
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Chairman and CEO Bruce Lucas attributed the saving to Heritage diversifying away from Florida, but it also boosted its participation in the Florida Cat Fund.
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The Everest Re group member has been hit by the departure of CEO Rick Pagnani and chief operating officer Michael Beck over the last year.
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Safepoint had initially hoped to raise $75mn from the ILS deal in a sign of tight capacity and increased rate demands in Florida.
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The Floridian insurer has reduced the target size of the deal from $75mn to $70mn, as spreads on the transaction have risen 23-24 percent year on year.
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The fund’s ordinary shares added 0.85 percent during the month.
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The fair value of AP3's ILS portfolio rose by 10.7 percent to $560mn at year end in 2018.
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AlphaCat’s $4.16bn net AuM was detailed in a recent Securities and Exchange Commission filing.
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Opening up opportunities for different forms of capital is a key part of the Lloyd’s vision for a future of increased efficiency and lower costs.
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The Prudential Regulation Authority is committed to ensuring the UK offers an ILS regime which allows the market to develop, says Gareth Truran, head of London market supervision
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The prospectus released this month made a play to appeal to investors seeking passive investment strategies and to allow Lloyd’s syndicates to attract more follow-form capacity.
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ILS could be used alongside swaps, buy-ins and buyouts to manage pension fund deficits, said Jennifer Donohue of Keystone Law at the ELSA life ILS conference.
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Among other promotions, chief risk officer Tim Aman will take responsibility for outwards reinsurance.
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The framework introduced by the BMA last July allows companies to test new technologies and products on customers in a controlled environment.
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The ILW-focused company plans to go public before the end of the year.
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The insurer will not place the riskier class B notes of the proposed deal.
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Grant Maxwell will be responsible for overseeing the underwriting process for Allianz Risk Transfer’s capital solutions business as well as portfolio management for ART.
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Mt Logan Re joins AlphaCat to manage the Australian asset manager’s $560mn ILS investments.
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FedNat took $18.7mn of net losses from a hail storm in Florida in March.
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The DaVinci Re result drove net income from $29.9mn in the first quarter of 2018 to $70.2mn at the end of Q1 this year.
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Singapore’s ILS grant scheme meets the upfront costs of structuring cat bonds.
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USAA is set to raise $135mn from the deal, which did not specify a target at launch.
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The four-year transaction will provide the carrier with protection against US named storms and earthquakes as well as European windstorms.
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The Floridian insurer reported a Q1 combined ratio of 100.3 percent, up 20.1 percentage points from the prior-year period.
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Axa XL has reported a 16 percent increase in P&C insurance business to EUR2.9bn ($3.2bn) in the first quarter of 2019.
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Premiums written by the Sompo International-owned vehicle were down 56.8 percent on the same quarter a year ago.
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Is ILS a sufficient part of Lloyd’s vision for a future of increased efficiency and profitability? There were certainly overtures to alternative capital in the Lloyd’s prospectus launch this week.
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A no-deal Brexit could send pension deficits back towards previous highs, Mercer said.
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Tornadoes this week have brought high winds, hail and flash flooding to the area.
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The Corporation needs to make it easier for capital in all its forms to come to the marketplace, Lloyd’s said in its prospectus launched today.
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Catastrophe losses increased $1.5mn quarter over quarter, to $5.5mn.
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The Lab was launched last year and allows start-ups to develop their ideas over a 10-week programme.
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The passing of the AOB bill reduces the rate need in Florida from 25.2 percent to 10.1 percent for homeowners policyholders, said Citizens.
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The Bermudian (re)insurer also almost doubled the amount ceded to its Harrington Re vehicle to $108.68mn at 31 March.
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The Swedish pension fund’s insurance portfolio returned 1 percent last year despite a second year of catastrophe losses.
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Sara Ager will work closely with team leader Clive O’Connell for clients including ILS funds.
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Twenty reinsurers took place in the electronic auction, making $250mn of capacity available.
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The deadly storm system threatens 90 million people and major cities as it moves east, CNN says.
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Procter has been tasked with helping Akinova drive participation in its electronic trading platform for (re)insurance risk.
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The 10-year notes were issued by special purpose insurer Eagle Re and placed with investors in a private offering last week.
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At 31 January this year, the fund’s net assets reached $62.4mn, almost double the $34.2mn total assets at the same point last year.
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Emmanuel Modu, global head of ILS at AM Best, says Bermuda insurers and ILS managers are increasingly showing interest in rated vehicles.
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Reinsurers avoided another lacklustre renewal season with loss-affected business in Japan, the US and the retro market attracting rate rises.
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LGT’s rated vehicle reported an income of $1.7mn in 2017
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The life settlement industry is looking to attract ILS capital but many industry practitioners are reluctant to enter the space due to concerns over valuations, returns and the sector’s past reputation for unscrupulous practices.
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Market participants have welcomed Lloyd’s plans to attract ILS capital but emphasised that cost reductions will be key to making them work.
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The storm on 27 March produced the most significant hailstorm in Brevard County’s history, the National Weather Service said.
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Participants at Trading Risk’s ILS conference in London last week said insurance linked securities must play a role in the Lloyd’s restructure.
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Loss creep dragged down returns, according to index provider ILS Advisers.
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The Canada Pension Plan Investment Board committed a further C$1.2bn ($930mn) last year to catastrophe reinsurance, its 2018 annual report shows.
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Part of the solution to lowering costs at Lloyd’s could be more employment of ILS, said Michael Wade, non-executive chairman at TigerRisk.
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The issue of collateral rollover “keeps coming up” in applications for new UK ILS transactions, with assurances needed that assets will not be counted twice, said the PRA’s Gareth Truran.
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The sidecar was established in 2017 to provide support for Hamilton Re’s reinsurance portfolio.
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The Swedish state pension fund currently allocates to three ILS managers: Fermat; Credit Suisse ILS; and Elementum.
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Stone Ridge’s Interval fund has shrunk due to catastrophe events and investor redemptions.
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Pioneer ILS Interval Fund’s net assets decreased by 8.8 percent to $904.6mn in the three months to 31 January, according to an SEC filing.
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The government intends to develop a policy for financing of natural disaster risk which could include cat bonds.
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Shareholders in the retro provider’s listed fund voted in favour of the runoff.
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As well as providing emergency relief, the scheme aims to push the government to purchase sovereign risk transfer products.
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Brokers could act as market makers for ILS transactions listed on the exchange.
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The tiny retro vehicle supporting the Florida reinsurer was wiped out, as Oxbridge’s premium income fell significantly in 2018.
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The new recruit has managed insurance-focussed investment portfolios for over a decade.
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The US National Weather Service has said more than 7 million people were under flood warnings on Tuesday.
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The deal would be the US agency’s second.
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It expects to broaden its ILS product offerings in the coming year.
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The New Mexico Educational Retirement Board pension fund invested in ILS via ILS Capital Management.
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This is PartnerRe's first longevity reinsurance transaction in Canada.
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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.
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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.
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New registrations are expected from the ILS market.
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AIR's European storm insured losses estimates have been consistently more than those of their counterparts.
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The fund’s chairman said the fee reduction was “welcome news” given the significant proportion of the company's asset base tied up in side-pocket investments.
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TransRe is paying investors a higher multiple relative to its first cat bond deal issued in 2018.
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The price the transaction offers investors has moved to the top end of initial forecasts.
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The regulator intends to publish further material to support the industry after the consultation period.
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The latest issuance brings Twelve Capital’s Dodeka issuance for this year up to $113.36mn.
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Oxfam aims to scale up the scheme, attracting insurance backing and investors, if the pilot is successful.
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The latest issuance brings Twelve Capital’s Dodeka issuance for this year up to $95.4mn.
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An Ares fund has used Nephila-backed proxy revenue swap contracts to help finance three wind farms in Texas.
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Raffaele Dell’Amore’s principal focus will be on private ILS strategies.
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There are some players in our industry who truly believe that any insurance risk can be securitised.
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The total is up 11.5 percent on the $424.4mn Radnor Re 2018-1 series issued in 2018.
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The New York-based asset manager received an increased level of requests for redemptions from investors in its Reinsurance Risk Premium Interval Fund this quarter.
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Prior to joining Tangency, Jo Stanton worked at AlphaCat, most recently as chief financial officer.
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Orchard ILS provides IAG with $54mn of annual aggregate cover for three years.
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Alastair Barbour, who is a non-executive director of the company and chairman of its audit committee, will leave at the end of this year.
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The Pool Re CEO has recently overseen the bringing to market of the £75mn Baltic Re terrorism cat bond.
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RGA will reinsure longevity risk from an in-force block of 45,000 Canadian annuities of the Manufacturers Life Insurance Company.
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Most investors in Markel Catco are expected to take up an offer to redeem their shares, as the platform further increased its loss reserves for 2017 events and had its value written down to zero by parent company Markel.
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Cat bond prices in the secondary market have begun recovering following a pre-Christmas sell-off, as investors sought to release capital ahead of the renewal, brokers said.
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The Merion Square ILS fund launched by Rewire Securities and Vida Capital will have the flexibility to invest in a wide variety of insurance instruments covering risks ranging from natural catastrophe to mortality to cyber, CEO Stefano Sola said.
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A diverse loss year produced steeper wildfire and typhoon losses than initially estimated.
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Rising claims from the 2017 hurricanes became one of the biggest losses in 2018 as Irma and Harvey claims continued to rise for longer than typical.
