Trading Risk June 2018

Recent developments in the sector have underscored the difficulties reinsurers are grappling with as they attempt to work ILS capital into their business model.

The average gain across a group of sidecars that remained on risk in the three months to 31 January came to 3.2 percent.

Leadenhall Capital Partners has won a mandate to invest £80mn ($106.8mn) for the North Yorkshire Pension Fund.

Hurricane season is now open, but I’d argue that the persistent headwinds facing the reinsurance industry are far more challenging than anything the Atlantic may send its way this summer.

Floridians HCI Group, United Insurance (UPC) and Heritage all spent more on reinsurance during the renewal, while Federated National shrank its reinsurance costs by 17 percent.

The reinsurer has raised $530.5mn of Sector Re debt since December 2017, ahead of the $492.0mn raised last year and the $394.7mn of limit available in 2016.

ILS investors lost 7 percent on average between 30 June last year and the end of April 2018, the Eurekahedge ILS Advisers index shows.

June people moves in the ILS market

Private lapse deals are on the rise in the ILS market, driven by Solvency II regulations which require life insurers to hold onto more capital for lapse risk, according to life ILS managers.

Is the industry ready to accept new attempts to create live trading platforms?

Florida catastrophe reinsurance rates crept up by 1.2 percent on average at this year’s 1 June renewal, marking the first increase in seven years, according to JLT Re.

Senior Scor executive Paul Hertelendy is expected to take up a new role at Credit Suisse’s insurance-linked strategies team, Trading Risk can reveal.