Stocks

Jeff Fraser was assistant vice president of cat pricing at the insurer before joining the ILS start-up.

The tone of discussions when the hurricane had a projected Florida landfall highlights the precarious nature of the reinsurance market’s current stability. 

There’s no doubt that the stress of a serious hit from Hurricane Dorian to Florida reinsurers will add age lines to the ILS market.

Sidecar sponsors may turn more to the private market in 2020 and face continued pressure on terms as capacity is expected to remain tight for pro rata support, according to experts.

The industry has around $30bn of excess capital, the analysts estimated.

The sidecar investor is still working through a backlog of investor redemptions.

The start-up fronting and risk sharing carrier was given a preliminary A- rating in March.

The hurricane is forecast to approach Florida as a major storm on Sunday evening.

The fund’s on-risk investments have performed positively in every month this year, according to a London Stock Exchange filing.

The catastrophe fund’s cover shrank by $80mn as it extracted flat pricing from carriers.

The fund has had to set aside more cash in side pockets after its mid-year 2018 portfolio rolled off risk.

The insurer’s overall cat losses were below its budget as higher Australian disaster activity was offset by benign international claims.