Trading Risk June 2018

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.

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.

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.

Hurricane Irma led to a sharp increase in lawsuits against Florida insurers in Q1 2018 compared with the same period last year, according to the Sun Sentinel.

Axa has said that XL’s reinsurance platform and access to alternative capital were among the attractions in tying up with the carrier.

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

The Bermuda-listed vehicle was established with $45mn raised from investors, with the remaining $5mn coming from the insurer itself.

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.

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

June people moves in the ILS market

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

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.