Here's our latest Friday wrap-up of key news from the week.
This week we attended the Monte Carlo RVS event and found in our conversations that there does seem to be some more appetite for well-structured and priced aggregate deals, with an element of capital expected to support this.
This week we also revealed that asset manager Stone Ridge has now reached an impressive $10bn of assets, across cat bonds, reinsurance and its Longtail Re strategy.
In a thoughtful and detailed response, the ILS industry came together to reply to ESMA's call for evidence on UCITS asset eligibility.
Mereo Insurance is expected to be up and running for 1/1, with equity and seed capital being finalized for its first insurance-linked securities (ILS) fund, Artemis has learned.
Chris McKeown of Vantage told us in an interview around the RVS event that inertia is the biggest threat and that the industry needs to escape the market cycle mindset.
We also reported that catastrophe bond funds delivered excellent August returns.
While today we revealed that Hannover Re could reduce the size of its K-Cessions sidecar quota share cession again for next year.
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In other news this week, hurricane Francine made landfall in Louisiana as a Category 2 storm, but early indications suggest it won't be overly costly and that insurers are likely to retain most of the loss.
Early industry loss estimates for hurricane Francine are suggesting a bill in the ~$1bn to $3bn range.
KBW analysts came back from Monte Carlo expecting a roughly 5% decrease in property cat pricing at the end of year renewals.
In interviews from the Monte Carlo RVS:
Chris Minter, the new Head of Swiss Re's Alternative Capital Partners (ACP) division, said one of the biggest challenges for ILS is the uncertainty and perception of the influence climate change may have on insured losses.
Marcel Grandi of Twelve Capital, believes the current reinsurance market environment and its pricing may persist longer this time.
Michael Stahel of LGT ILS Partners is not expecting a significant shift in premium from current price levels and notes the company will strategically shift capacity between areas of the market to source the best deal opportunities for its investors.
Client demand for risk capacity is "accelerating in all dimensions" according to Shiv Kumar, President of GC Securities, the capital markets and ILS specialist unit of reinsurance broker Guy Carpenter.
Investor sentiment for accessing the specialist Lloyd's insurance and reinsurance marketplace is very strong as scepticism around the market following some turbulent years has eased on the back of impressive results, according to executives at Argenta Private Capital Limited (APCL).
Finally, if you haven't seen them, Artemis has a wealth of data and analytics on the catastrophe bond and broader ILS market. View our charts and Deal Directory.
Catch up on our video interviews with ILS market leaders here.
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We'll be back next week with more regular coverage.
We hope you have a safe & relaxing weekend.
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