Reinsurance News
Alternative capital
Alternative capital has become a core fixture of the global reinsurance capital stack, as large reinsurance companies partner with third-party investors, or cede risk to managers of third-party capital.
Alternative reinsurance capital has been a key trend over the last two decades, growing to make up approximately 15% of the global reinsurance capital and an even larger proportion of global catastrophe focused reinsurance capital.
Alternative capital is also finding its way into more lines of reinsurance business, including the life and annuity market, as well as casualty and specialty lines.
Read our news about alternative capital in reinsurance below.
AXIS expands capital markets reinsurance support with $39m Alturas Re sidecar issuance
2nd July 2019
Bermudian insurer and reinsurer AXIS Capital Holdings Limited has sponsored a $39 million issuance of notes to its collateralised reinsurance sidecar, Alturas Re Ltd. The latest issuance is the third of this year and takes the total amount of capital backing the sidecar vehicle to $169 million for 2019. As reported by ... Read the full article
June 1 rates expected to be up 10% – 30% for loss-affected accounts: Analysts
3rd June 2019
Meetings with insurers and reinsurers in Bermuda points to an expectation of average mid-year reinsurance renewal price increases of 10% - 30% for loss-affected accounts, according to analysts at Morgan Stanley. After a prolonged period of falling rates, heavy catastrophe losses and a muted rate response, reinsurers were hopeful of a ... Read the full article
Arch returns to the capital markets for additional mortgage reinsurance
1st May 2019
Arch Capital Group Ltd.'s U.S. mortgage insurance subsidiary, Arch Mortgage Insurance Company (Arch MI), has tapped the capital markets for $621 million of indemnity mortgage reinsurance protection. The reinsurance protection is for a pool that represents $35.58 billion of mortgages from Bellemeade Re 2019-2 Ltd., a special purpose reinsurer. The deal is structured ... Read the full article
157 Re provides valuable diversification for the expanding CCR Re
30th April 2019
The establishment of the first French domiciled collateralised reinsurance sidecar vehicle by state-backed CCR Re, supports the reinsurer’s ambitions to expand and diversify its catastrophe portfolio, according to Bertrand Labilloy, CEO of CCR Re. Launched at the end of March, 2019, 157 Re will assume a 25% quota share of the ... Read the full article
Reinsurers have no choice but to be creative: Aditya Dutt, RenRe
12th April 2019
The evolution of the capital structure forces reinsurers to be innovative and creative, and is one of the most fundamental and permanent changes to the industry over the last three decades, according to Aditya Dutt, President of Renaissance Underwriting Managers, Ltd. and Senior Vice President (SVP) and Treasurer, RenaissanceRe Holdings ... Read the full article
FEMA returns to capital markets for NFIP risk transfer
21st March 2019
The U.S. Federal Emergency Management Agency (FEMA) has returned to the capital markets as it looks to transfer $300 million of risk from the National Flood Insurance Program (NFIP). FEMA is seeking at least $300 million of collateralised reinsurance protection from insurance-linked securities (ILS) investors through its second catastrophe bond transaction ... Read the full article
Singapore targets ILS with issuance of first catastrophe bond
27th February 2019
For the first time in the history of the catastrophe bond market, a transaction has been issued out of Singapore, underlining the potential of the insurance-linked securities (ILS) market in the region. The deal, Orchard ILS Pte Ltd, is sponsored by Insurance Australia Group (IAG) as part of its 2019 catastrophe ... Read the full article
Investor losses drive retro pricing hikes amid flat 1/1 market: A.M. Best
11th February 2019
Large catastrophe losses and ongoing loss creep resulted in pricing hikes of up to 35% for the retrocession segment at the January 2019 renewals, as investors pushed for higher returns amid a predominantly flat rating environment, according to A.M. Best. Analysts said that property catastrophe retrocession was the brightest spot at ... Read the full article
Swiss Re opens capital markets unit in Luxembourg ahead of Brexit
29th January 2019
Swiss Re has set up a new capital markets unit in Luxembourg to ensure continuity of service for its derivative contracts after the UK leaves the European Union. Swiss Re Capital Markets Europe, S.A. was established by the reinsurer’s commercial risks division, Swiss Re Corporate Solutions, to ensure that the company ... Read the full article
Global reinsurance capital resilient despite two years of losses: Aon
14th January 2019
Dedicated, global reinsurance capital declined by 2% in the first nine months of 2018 to $595 billion, driven by a decline in traditional capital by $20 billion, according to insurance and reinsurance broker Aon. The 2% overall decline to $595 billion at the end of September, 2018, is from the end ... Read the full article
Global, dedicated reinsurance capital hits $348bn in 2018: JLT Re
2nd January 2019
Estimated global, dedicated reinsurance capital increased by $2 billion in 2018 to $348 billion, driven by growth in the traditional arena as the volume of alternative reinsurance capital remained flat, according to reinsurance broker JLT Re. JLT Re, the reinsurance arm of global brokerage JLT Group, said recently that the Read the full article
Bermuda dominates global alternative capital market with 58% share: BMA
24th December 2018
With alternative capital showing sustained steady growth within the global reinsurance market, Bermuda’s share of total capacity was $51.9 billion, or approximately 58%, according to a report by The Bermuda Monetary Authority. As a whole, industry estimates placed alternative capital at approximately $89 billion, or about 15% of overall global reinsurance ... Read the full article
KBW anticipating modest rate improvements at 1/1 renewals
18th December 2018
Analysts at Keefe, Bruyette & Woods (KBW) are expecting low single-digit increases in reinsurance pricing at the 1 January 2019 renewals due to the significant catastrophe losses experienced this year and some constraint on the supply of alternative capital. KBW acknowledged that the abundance of third-party capital in the property catastrophe ... Read the full article
European reinsurance pricing to continue improving through 2019: Barclays
18th December 2018
Reinsurance prices in the European market should continue to gradually improve throughout 2019 as demand goes up and capacity becomes more constrained, according to analysts at multinational investment bank Barclays. Barclays estimates that the reinsurance industry is set to incur around $70 billion in large loss claims this year, which is ... Read the full article
Alternative capital growth to further restrict pricing cycles: Swiss Re
14th December 2018
Alternative capital has matured into an integral player in the property catastrophe reinsurance and retrocession markets, but its continued growth is likely to further curb the volatility of the overall underwriting cycles, according to a report from the Swiss Re Institute. Over the last decade, the alternative capital market has become ... Read the full article
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