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 […]

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, […]

Reinsurance – Defensive, with a cycle hardening tailwind: Goldman Sachs

Equity analysts from investment bank Goldman Sachs have, perhaps unwittingly, laid out a thesis for insurance-linked securities (ILS) investing in their latest research report on the global reinsurance market, which they laud for its defensive investment properties and note has very positive tailwinds at this time. The analysts are commenting on the prospects for the […]

Our industry needs to look at hurricanes from an evolved perspective: Swiss Re

A recent Risk Perspective blog from Swiss Re’s Mohit Pande has outlined the hurricane risks that the industry and economy currently face. According to CoreLogic, nearly 33 million homes on or near the Atlantic and Gulf coasts are at risk of hurricane-force wind damage, the estimated cost to replace them is $10.5 trillion. The impact […]

Cyber ILS market growth to be slow, as investors still hesitant: S&P

Many insurance-linked securities (ILS) investors remain hesitant about allocating capital to cyber insurance and reinsurance risks, which leads rating agency S&P Global to suggest growth of a cyber ILS market will likely be slow in the short to medium term. With market conditions for insurance-linked securities (ILS) investors seen as improving after several difficult years […]

Era of catastrophe-focused traditional reinsurers may be over: AM Best

The era of catastrophe-focused traditional reinsurers appears to be over, rating agency AM Best announced today, as the pulling-back continues in some quarters, while the addition of more diversifying lines of business accelerates among once cat-specialist US and Bermuda based reinsurance firms. AM Best explained in a recent report that the catastrophe exposed regions of […]