Alternative reinsurance capital could be more relevant than ever: S&P

Alternative capital could be “more relevant than ever” in the global reinsurance industry and has a chance to grow, at a time when reinsurers are looking to manage their volatility more tightly and pulling-back in some quarters such as catastrophe risks, according to S&P Global Ratings. In updating its analysis of the global reinsurance sector, […]

Reinsurance capital shrinks, ILS market share grows to 15%: Gallagher Re

Alternative reinsurance capital, so the capacity deployed through insurance-linked securities (ILS) structures including catastrophe bonds, has remained relatively flat since 2021, but with traditional reinsurance capital having shrunk, the ILS market’s share has increased, according to Gallagher Re. In a report released today, broker Gallagher Re highlights the decline in traditional reinsurance market capital, as […]

TehranRe sets up with ILS ambitions

A new reinsurer has been established in Iran’s capital called Tehran Reinsurance Company, which launches with around USD 20 million of capital, and which has ambitions to offer services for a local insurance-linked securities (ILS) market. After Iranian regulators approved the launch of TehranRe in March 2021, the firm reached an agreement in principal for […]

Investment volatility to constrain China Re earnings: S&P

Analysts at S&P Global Ratings have warned that investment market volatility will constrain China Reinsurance (Group) Corp.’s earnings, potentially eating into its capital buffer and potentially eclipsing the progress it has made in overhauling its underwriting. The rating agency notes that China Re is more susceptible to credit and market risks than its international peers […]

Reinsurers divided on natural catastrophe risk: S&P

S&P Global Ratings has said that global reinsurers are parting ways on natural catastrophe risk, with half growing their exposure in this area over the course of the year. Meanwhile, the S&P said that the remainder are taking a more cautious and defensive stance by reducing their exposure. The firm said that this divergence in […]

Santam passes most of $257m flood loss to reinsurers

South African insurer Santam has reported its results for the first six months of 2022, which include a gross exposure of R4.4 billion (USD 257 million) to flooding in the KwaZulu-Natal province. However, the company’s net impact from the floods was limited to R566 million (USD 33 million) thanks to its reinsurance program, meaning reinsurers […]

Asia-Pacific reinsurers can use ILS capital to compete with global peers: AM Best

Reinsurance companies in the Asia Pacific region can leverage insurance-linked securities (ILS) and alternative capital to capture hardening market opportunities and become more competitive with their global peers, rating agency AM Best has advised. Alternative capital and insurance-linked securities (ILS) can help to make regional reinsurers more competitive in their home countries and also globally, […]

Climate change stimulates catastrophe bond market development: Fitch

In a new report, rating agency Fitch states that climate change is stimulating the development of the catastrophe bond market, as demand for protection rises and the capital markets offers an efficient source of reinsurance against climate-linked catastrophe events. While the reinsurance market is facing challenges from macro-economic factors such as inflation, a persistent threat […]

Cat bond spreads widened in the secondary market as H1 drew to a close: Aon

Spreads in the secondary market for catastrophe bonds began to widen towards the levels seen for primary cat bond transactions as the first-half of the year drew to a close, broker-dealer Aon Securities has said. Commenting on secondary cat bond market conditions through the second-quarter of 2022, Aon Securities, the investment banking and broker-dealer unit […]

Catastrophe bond market positioned for next stage of growth: Swiss Re

The trend of increased new issuance volume in catastrophe bonds is expected to continue, with positive growth of the cat bond market expected as a result, according to Swiss Re Capital Markets. The capital markets and broker-dealer entity of the Swiss Re reinsurance group expects that insurance-linked securities (ILS) in catastrophe bond form will continue […]