Life-threatening storm surge is already occurring along the coastline from Alabama to the Florida Panhandle, including Pensacola Bay and southern portions of Mobile Bay.
The ILS market is seeking to avoid further high levels of collateral lock-up should a string of events similar to those in 2017-2018 happen again, writes Lucy Jones.
The latest increase has pulled its cumulative returns since inception down to a loss of 52.9 percent for ordinary shares, as prior-year gains have been more than wiped out by 2017/18 disaster events.
The modelling company’s range for the European storm is significantly higher than the $680mn cost forecast by actuarial consultants Meyerthole Siems Kohlrus.
Julian Enoizi, who was instrumental in bringing the £75mn Baltic Re terrorism cat bond to market, said using ILS for an exotic risk was “a long journey”.
The total of Hurricane Michael claims filed with Floridian insurers through to 11 January has reached $5.02bn, the Florida Office of Insurance Regulation said.
Richard Slater joins from XL Catlin as underwriting director, while Adam Champion leaves MS Amlin to take the role of senior vice president, portfolio manager and operations.
Securis-backed Special Purpose Arrangement (SPA) 6129 made a loss of £31.4mn ($44.2mn) in 2017 following the year's major catastrophe losses, as its combined ratio spiked to 180.4 percent.
The Prudential Regulation Authority (PRA) has hired an insurance-linked securities specialist from interdealer broker Tullett Prebon to work in the fledgling UK sector, sister publication Trading Risk reported
The US Federal Emergency Management Agency plans to turn to the insurance-linked securities market to bolster its flood cover through a July placement.
Catastrophe data aggregator Perils has pegged its second loss estimate
for extra-tropical Cyclone Eleanor, also known as Burglind, at EUR680mn ($836.7mn).
Markel Catco's London-listed Reinsurance Opportunities Fund had to put two-thirds of its year-end 2017 asset base into side pockets, much higher than the typical 5-15 percent that it puts on hold each year, sister publication Trading Risk reported.
The Florida Hurricane Catastrophe Fund said its losses from Hurricane Irma were expected to reach $2.04bn, less than half its previous estimate of $5bn.
UK terrorism reinsurer Pool Re is considering tapping the newly minted UK insurance-linked securities market through an issuance worth at least $100mn, sister publication Trading Risk reported.
Nephila Capital is planning to launch its own managing agency, replacing current turnkey firm Asta Managing Agency with its own personnel to run its Lloyd's Syndicate 2357 in-house, according to sister title Trading Risk.
Tokio Marine is launching a new earthquake cat bond which will protect both itself and subsidiary, Nichido Fire Insurance, sister title Trading Risk has reported.
The Bermuda Monetary Authority (BMA) has been criticised for demanding new disclosures from local alternative reinsurance operators without sufficient consultation with involved parties.
Markel Catco has placed 41.5 percent of net assets in its London-listed Reinsurance Opportunities Fund into side pockets connected to the 2017 losses, the retro manager said in an update on its 2018 portfolio.
Several Latin American countries are set to benefit from $1.36bn of combined earthquake reinsurance from a new cat bond, sister publication Trading Risk reported.
RenaissanceRe's third-party capital platforms have engaged in substantial fundraising following hurricanes Harvey, Irma and Maria, the carrier revealed in its Q4 results.
Annual insured catastrophe losses surpassed $140bn for the first time last year following the California wildfires and hurricanes Harvey, Irma and Maria (HIM), according to JLT Re.
AIR Worldwide has said insured losses as a result of wind from Storm Eleanor, known as Burglind in Germany, will total EUR1.1bn to EUR1.6bn ($1.3bn-$1.9bn).
The Californian Department of Forestry and Fire Protection has said the Thomas wildfire in the south of the state is now 92 percent contained, having destroyed only 1,063 structures.
Lloyd's (re)insurer Neon will become the first party to use the new UK insurance-linked securities (ILS) framework after it secured approval from the Prudential Regulation Authority (PRA) to launch a sidecar
At least $3.8bn of new capital has been raised in the space following significant losses from hurricanes Harvey, Irma and Maria (HIM), according to Trading Risk data.
United Insurance Holdings (UPC Insurance) has raised $150mn through a public debt offering, which the Floridian carrier has said will enable it to participate in future opportunities.
Markel Catco has increased its fund loss reserves for its Catco Reinsurance Opportunities Fund by 4.4 percent of net asset value (NAV) in response to October's California wildfires.
XL Catlin has launched a $150mn Galileo Re cat bond which seems to give an early indication of rate increases in the insurance-linked securities space, The Insurance Insider’s sister publication Trading Risk has reported.
Insurance-linked securities (ILS) investors contemplating leaving the sector because of low rates may be enticed to stay by the price increases expected following the recent hurricanes, according to Todor Todorov, head of ILS research at Willis Towers Watson.
Insurance-linked securities (ILS) managers must enter into dialogue with cedants to build confidence following the recent hurricanes, said Paul Schultz, CEO of Aon Securities, speaking at the Trading Risk New York Rendez-Vous last week.
Fund manager Markel Catco has stepped up reserving following hurricanes Harvey, Irma and Maria, setting aside a total amount equivalent to a fifth of its net asset value (NAV)
Tropical Storm Nate is forecast to hit Louisiana, Mississippi and Alabama as a Category 1 storm this weekend, almost 32 years after Hurricane Juan took a similar path at the same strength and caused $5.5bn of damage in today's terms
Uncertainty over the cost of hurricanes Irma and Maria has put the brakes on the recovery of the secondary cat bond market, which had initially rebounded.
Insurance-linked securities (ILS) fund manager Markel Catco has warned that combined losses from hurricanes Harvey and Irma have the potential to fully erode its annual returns "or more" for 2017.
Determining the root cause of Hurricane Harvey losses and identifying whether claims should fall to the private sector or the state will create a huge legal conundrum in the wake of the storm, lawyers have said.
A World Bank-backed $206mn catastrophe risk insurance programme has been launched in the Philippines to help the country better respond to losses from severe weather, earthquakes and other natural disasters.
Markel Catco escaped significant losses in the first half of the year to provide a 3.94 percent return for ordinary shareholders in the Catco Reinsurance Opportunities Fund, the company said in an interim financial report.
A new $206mn catastrophe risk insurance programme developed by the Filipino government and the World Bank that involves major European reinsurers will help the Pacific island nation better respond to losses from severe weather, earthquakes and other natural disasters.
The National Oceanic and Atmospheric Administration (NOAA) joined other forecasters in projecting a more active US hurricane season this year in its updated August outlook, as the second hurricane of 2017 emerged.
Two weather forecasters have lifted their projections for the number of named storms in the current Atlantic hurricane season, falling into line with the expectation of a slightly above-average year
Property Claim Services (PCS) is tracking two storms that hit Turkey in July as catastrophe events after local media reported substantial insured losses
Willis Towers Watson Securities has said the record $6.3bn of non-life cat bond issuance in the second quarter may spell the beginning of the end for traditional property cat reinsurance.
Reaction to the UK government's insurance-linked securities (ILS) regulations released last week has been positive, with market participants saying their concerns about earlier draft proposals had been noted and the end result was a framework they could work with.
Florida homeowners' insurer Federated National renewed its $2.19bn reinsurance programme along similar lines to the 2016 cover for a total outlay of $180mn, according to a Securities and Exchange Commission filing.
AmTrust Financial Services has joined the list of first-time cat bond sponsors in 2017 as it seeks to raise $100mn from Fortius Re II, according to Trading Risk sources
Amlin-owned insurance-linked securities (ILS) manager Leadenhall's support of InsurTech life insurance start-up Gryphon Group Holdings is connected to a reinsurance transaction, Trading Risk reported.
Swiss Re expanded its Sector Re sidecar to $492mn midway through 2017 to increase its retro support from the vehicle by $100mn in the past year, sister publication Trading Risk revealed last week.
Leadenhall Capital Partners announced its assets under management (AuM) had grown by more than $800mn in the past half-year to reach $4.2bn by 1 June as the company was named as an investor in start-up Gryphon Group Holdings.
Brown & Brown-owned Arrowhead General Insurance Agency has added a small earthquake and hurricane insurance agency TriCoast Insurance to the group, the company announced.
Lloyd’s plans to form an insurance-linked securities (ILS) trading platform could be realised once Brexit matters have been dealt with, according to its outgoing chairman John Nelson
The 2017 hurricane season in the Atlantic, Caribbean and Gulf of Mexico is likely to be more active and intense than previously forecast, Colorado State University (CSU) scientists said
The 2017 hurricane season in the Atlantic, Caribbean and Gulf of Mexico is likely to be more active and intense than previously forecast, Colorado State University (CSU) scientists said.
Tropical Storm Risk (TSR) has upgraded its expectations for the forthcoming US hurricane season and is now forecasting activity will be roughly in line with both the 2007-2016 norm and the long-term average.
The Rocky Mountain Insurance Information Association has estimated insured losses from the hailstorm that hit Colorado's Front Range region on 8 May at $1.4bn, making it the state's costliest catastrophe to date.
UPC Insurance incurred almost $20mn of catastrophe losses for the first four months of the year to put it $10mn shy of triggering its aggregate and quota share reinsurance covers, sister publication Trading Risk reported last week
Attractive prices drew sponsors to the cat bond market in the first three months of 2017, resulting in a record volume of insurance-linked securities (ILS) issuance for an opening quarter.
Suncorp has said its reinsurance should cover any claims resulting from Cyclone Debbie, which is expected to land in Queensland on Tuesday (28 March) as a major storm.
Insurance spreads on new cat bond deals this year have dropped by 12 percent on average during the marketing process, as insurance-linked securities sponsors pressed hard to take advantage of a softening market.
Lloyd's insurer Icat Syndicate 4242 managed to get a 10 percent discount on the premium for its Buffalo Re cat bond, as investor demand pushed down pricing on the deal.
Allstate Insurance Company is seeking to raise $300mn from a new four-year Sanders Re cat bond in its first nationwide indemnity insurance-linked securities transaction, sister publication Trading Risk reported last week (6 March).
The World Bank's Pandemic Emergency Financing Facility (PEF) is on track to be completed this year, according to Michael Bennett, head of derivatives and structured finance at the organisation
Florida Citizens Property Insurance is expecting an increase in business as a result of Demotech's warning that local insurers with less than $25mn surplus may be downgraded, according to its chief financial officer Jennifer Montero
The insurance-linked securities (ILS) market should expand its assets under management (AuM) at a similar pace in 2017 to last year, but increased use of leverage could provide more capacity even if growth slows, according to Willis Capital Markets & Advisory (WCMA).
The London market would be able to survive two major events incurring cumulative insured losses of $200bn, according to a stress test exercise conducted by an industry steering group.
Growth in the availability of insurance-linked securities (ILS) limit is now outstripping the increase in alternative capital owing to the increased use of leverage, according to the latest ILS market update from Willis Capital Markets & Advisory (WCMA)
Claims from Hurricane Matthew and the Kaikoura, New Zealand earthquake each shaved 1 percentage point off Markel Catco's returns for 2016, the company said.
Markel Catco's Reinsurance Opportunities Fund reported annual returns for ordinary shareholders of 8.12 percent in 2016, down from an 11.6 percent gain in 2015, following a series of major loss events
The significant number of maturing bonds and ongoing favourable environment for sponsors could push cat bond issuance for 2017 to $8bn, insurance-linked securities (ILS) brokers said.
American Strategic Insurance has told investors that 2016 storm losses covered by its Gator Re cat bond have reached $195mn, surpassing the bond's $175mn trigger point, sister title Trading Risk understands
XL Bermuda has turned to the cat bond market to line up as much as $1bn of retro cover in what is one of the largest transactions at launch in the insurance-linked securities (ILS) market's history, sister publication Trading Risk reported last week.
Floridian insurer American Strategic Insurance is set to raise $200mn from its Bonanza Re cat bond as strong investor demand pushed the insurance-linked coupon on the transaction below initial targets, sister publication Trading Risk reported.
UK Economic Secretary to the Treasury Simon Kirby has called upon the insurance industry to engage thoroughly with the consultation on the draft regulations for London's insurance-linked securities (ILS) hub.
The governor of the Reserve Bank of New Zealand has said that insurers are likely to bear between NZ$1.0bn and NZ$5.0bn ($0.7bn-$3.5bn) of the total NZ$8.0bn cost of the Kaikoura earthquake.
Generali is seeking EUR180mn ($192mn) of cat bond cover for its motor third-party liability book through a Dublin-based special purpose vehicle called Horse Capital I DAC, sources told sister publication Trading Risk.
The London market ILS framework needs to introduce clearer terminology on the requirement for transaction structures to be "fully funded" to avoid uncertainty, according to Clifford Chance, legal advisers to London Market Group (LMG)'s ILS working group.
The final PCS industry loss figure for the Fort McMurray wildfires in Alberta, Canada has settled at C$3.98bn ($2.96bn), sister title Trading Risk reported last week.
PCS has reduced its estimate of insured losses from the Fort McMurray wildfires to C$3.98bn ($2.96bn), as insurers get a better handle on claims from the event.
Insured losses from recent hailstorms in Australia's Mildura region have tripled to A$71mn ($53.4mn), according to estimates from the Insurance Council of Australia (ICA).
The Caribbean Catastrophe Risk Insurance Facility (CCRIF) has made a number of payouts following Hurricane Matthew, including its largest payment to date of $20mn to Haiti.
The Swiss Re cat bond index rose 1.57 percent to reach 95.53 points on 14 October, clawing back the value that was lost while Hurricane Matthew made its way up the Florida coastline.
IAG reported a 7 percent year-on-year increase in profits to A$1.18bn for its 2015-2016 financial year, which took into account higher-than-expected natural peril costs following storms on the east coast of Australia.
Insured losses from natural and man-made catastrophes rose 51 percent year-on-year to reach $31bn in the first half of 2016, according to Swiss Re's Sigma unit.
Validus recovered almost three-quarters of its Jubilee oil field loss from an industry loss warranty (ILW) payout, the carrier's second quarter results showed
A weather cat bond is being pitched to insurance-linked securities (ILS) investors for the first time since the late 1990s, sister publication Trading Risk reported last week
Nephila Capital's fronting partner Allianz Risk Transfer more than doubled its target size for its second cat bond of the year, sister publication Trading Risk reported last week.
Nephila's fronting partner Allianz Risk Transfer has more than doubled its target size for a second Blue Halo Re cat bond issuance to $225mn, sister publication Trading Risk reported.
Second quarter catastrophe losses will only have a small impact on the (re)insurance sector, panellists agreed at the Guernsey ILS Insight event in Zurich on 7 July.
Endurance-owned cat asset manager Blue Capital has estimated that it will incur losses of $5.1mn from catastrophe events in the second quarter, the company said yesterday (14 July).
US commercial insurance rates rose by less than 1 percent during the first quarter of 2016, Willis Towers Watson's latest Commercial Lines Insurance Pricing Survey (Clips) has shown
The Insurance Council of Australia (ICA) has called on the country's main political parties to commit to increasing federal funding for natural disaster resilience ahead of next month's election.
Nephila's fronting partner Allianz Risk Transfer (ART) raised the target for its Blue Halo Re cat bond to $185mn from $150mn as pricing on the high-risk transaction moved towards the upper end of forecasts, Trading Risk reported last week.
