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.
Peak Re secures $75mn of retrocession in Asia’s first sidecar deal
10th December 2018
Hong Kong domiciled reinsurer, Peak Reinsurance Company Limited (Peak Re), has secured $75 million of collateralised retrocession from private investors via its new Bermuda-domiciled special purpose insurer, Lion Rock Re Ltd. The deal is Asia’s first sidecar transaction and Peak Re claims that it represents an important milestone for the region’s ... Read the full article
Alternative capital market proven to be “relevant and reliable”: PwC’s Gibbons
28th November 2018
The alternative capital market has shown itself to be both “relevant and reliable” following the series of heavy global catastrophe losses in 2017 and 2018, according to David Gibbons, insurance-linked securities (ILS) leader at PwC. Speaking as part of a panel at PwC’s Insurance Summit event in Bermuda, Gibbons said that ... Read the full article
Stephen Fromm appointed Vice Chairman, TigerRisk Capital Markets & Advisory
26th November 2018
Reinsurance brokerage, risk and capital strategic advisory TigerRisk Partners LLC has announced the appointment of Stephen Fromm as Vice Chairman, TigerRisk Capital Markets & Advisory. Fromm has been in private practice since 2016, advising a number of start-up, fintech and financial services companies. Previously he was Managing Director and Vice Chairman of ... Read the full article
Q3 catastrophe bond issuance highest ever at $1.6bn: Willis Re
6th November 2018
Catastrophe bond issuance was at a record-high during the third quarter of 2018, totalling $1.6 billion, which exceeded the former Q3 record of $1.4 billion in 2013, according to the new insurance-linked securities (ILS) Market Update from Willis Re. The Q3 total is also well ahead of the $800 million five-year ... Read the full article
Arch obtains further $506mn of mortgage reinsurance from capital markets
23rd October 2018
Arch Mortgage Insurance Company (Arch MI), the U.S mortgage insurance arm of Arch Capital Group, has secured a further $506.11 million of indemnity reinsurance from the capital markets via an insurance-linked securities (ILS) transaction with Bellemeade Re 2018-3 Ltd., a special purpose reinsurer. The reinsurance relates to a portfolio of mortgage ... Read the full article
RKH hires Dave Saxton amid alternative capital drive
22nd October 2018
RKH Reinsurance Brokers (RKH RB), part of the global Hyperion Insurance Group, has appointed Dave Saxton from Steadfast Re to its London operations, according to reports from our sister site, Artemis. The appointment will bring additional treaty, insurance-linked securities and collateralised broking expertise to RKH, and comes amid a wider ... Read the full article
Reinsurance products backed by alternative capital have become mainstream: WTW
22nd October 2018
End investors, Insurance Linked Securities (ILS) funds, and buyers – the three groups active in ILS – have mostly weathered last year’s substantial loss activity with a view that reinsurance products backed by alternative capital have become mainstream, according to a new survey by Willis Towers Watson. In fact, the 2017 ... Read the full article
Reinsurance buyers expect to see greater use of third-party capital: Survey
19th October 2018
The large majority of protection buyers expect to purchase either the same or more reinsurance at the January 2019 renewals, with most anticipating a greater use of third-party reinsurance capital, according to the Reinsurance News and Artemis Reinsurance Market Survey. The survey reveals that over 86% of respondents, of ... Read the full article
Arch returns to capital markets for $506m mortgage reinsurance deal
17th October 2018
Re/insurance specialist Arch Capital Group has turned to the capital markets for a third time this year, as it looks to complete an insurance-linked securities (ILS) transaction that will provide $506.11 million of reinsurance capacity, according to reports from our sister site Artemis. Once this deal completes, Arch will have ... Read the full article
Hannover Re helped clients secure $1.5bn from capital markets over 2018
17th October 2018
With the recent completion of its fifth catastrophe bond transaction, Hannover Re has helped its clients to secure more than US $1.5 billion of reinsurance capacity from the capital markets over 2018. The company’s latest transaction was a $125 million cat bond covering San Diego-based energy infrastructure company Sempra Energy against ... Read the full article
MGIC taps capital markets to secure $318mn of mortgage reinsurance
17th October 2018
One of the largest mortgage insurers in the United States, Mortgage Guaranty Insurance Corporation (MGIC), has sought $318.6 million of capital markets-backed reinsurance capacity with its first insurance-linked securities (ILS) transaction, according to our sister site Artemis. Reports from Artemis had revealed that the mortgage insurance specialist was eyeing ... Read the full article
Victor appoints Eric Solash as Head of Capital Markets
16th October 2018
Victor Insurance Holdings, the managing general underwriter previously known as The Schinnerer Group, has announced the appointment of Eric Solash to the newly created position of Global Head of Capital Markets. In this role, Solash will be responsible for developing Victor’s capital markets strategies globally across all classes of property ... Read the full article
Willis Re appoints Edward Torres as Structured Risks & Legacy broker
12th October 2018
Willis Re, the reinsurance arm of international broker Willis Towers Watson, has appoint Edward Torres as Structured Risks & Legacy broker. As a member of the Financial Advisory team, Torres will operate out of Willis Re’s New York City office and will focus on the placement of prospective structured reinsurance solutions ... Read the full article
AGCS restructures Alternative Risk Transfer business
9th October 2018
Allianz Global Corporate & Specialty (AGCS), the specialist corporate re/insurer of Allianz Group, has announced that it plans to restructure its existing Alternative Risk Transfer (ART) line of business into two specialist teams. From November 1, the Insurance-Linked Markets team will become a standalone line of business known as Capital Solutions, ... Read the full article
Reinsurance M&A to continue, driven by alternative capital access: Fitch
4th October 2018
Mergers and acquisitions (M&A) activity in the reinsurance industry is expected to continue, driven in part by a desire for companies to gain better access to alternative capital platforms, according to Fitch Ratings. Consolidation provides a range of potential benefits for reinsurers, including revenue diversification, economies of scales, improved return on ... Read the full article
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