ILS

Allstate will seek to add another $150mn to its cat bond reinsurance protection through a Florida indemnity deal after raising $750mn from its Sanders Re issuance, sister publication Trading Risk revealed last week.

Florida private cat bonds continue ahead of 1 June renewal season...

The influx of capacity from capital markets into the reinsurance sector could almost double to $87bn within the next five years without the need for new investment or proportionate allocations, according to Mike Millette, global head of structured finance at Goldman Sachs.

Looking out into the senior audience to open the last week's fifth InsiderScope New York conference, it was easy to succumb to the temptation to permit ourselves a little showmanship.

If the P&C sector can find excess capital sitting in reinsurance and connect it with the unmet needs of retail insurance buyers it will change the face of the industry, according to Aon Benfield CEO Eric Andersen

US insurer Allstate is testing ILS investors' appetite with Sanders Re, which - at the time of going to press - looked increasingly likely to upsize from $600mn to $750mn

American Coastal Insurance Company has renewed its Armor Re cat bond at a lower rate than last year, but nonetheless it is one of the few ILS transactions to price at the upper-end of expectations

Evidence would suggest that the collective memory of most of our investor base is around five years. That is not helpful to an industry that too often forgets the lessons of the past...

The insurance-linked securities (ILS) market shrank temporarily during the first quarter of 2014 despite a record volume of new issuance for the start of the year, Munich Re Capital Markets said in its Q1 review of the sector.

A Texas Windstorm Insurance Association (TWIA) committee recommended during a 21 April meeting that the state insurer of last resort should focus on sourcing aggregate reinsurance protection for its 2014 programme, including a cat bond.

Floridian insurer American Coastal Insurance Company has returned to the insurance-linked securities (ILS) market with a renewal of its Armor Re cat bond shortly after pricing settled on two other Florida-focused bonds.

Florida Citizens Property Insurance kept its risk transfer budget for 2014 stable at $300mn but managed to buy 70 percent more reinsurance limit than last year, highlighting the swingeing rate reductions that have occurred in the Sunshine State over the past two years.