This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. For private equity investors, the use of alternative capital vehicles and insurance-linked securities (ILS) structures presents a mature way to take advantage of reinsurance market cycles in an efficient manner, analysts at BMO Capital Markets have highlighted. This is a trend we’ve closely watched over the years, where some equity investors are now aware that they can access the risk premium of the reinsurance market, without all of the operational risk and overhead, through stru ..read more

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. The issuance of IBRD CAR Mexico 2024, the Government of Mexico’s $420 million Mexico earthquake and Atlantic coast named storm catastrophe bond, “is a fundamental part of the federal strategy for Financial Management of Disaster Risks”, according to Héctor Santana Suárez, Head of Insurance, Pensions and Social Security in the Ministry of Finance of México. The Government of Mexico’s new World Bank and IBRD facilitated catastrophe bond provides the country with parametric disaster ..read more

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. Researchers from North Carolina State University have forecast that the 2024 Atlantic hurricane season will be an active one, with the number of named storms predicted to be “significantly higher than the long-term average” and a special mention for the Gulf of Mexico, with up to seven named storms expected there. The North Carolina State University forecasters are among the teams we have tracked here on Artemis for well over a decade, as a service to our insurance, reinsurance an ..read more

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. Zenkyoren, the Japanese National Mutual Insurance Federation of Agricultural Cooperatives, has now secured its targeted $150 million of reinsurance from the new Nakama Re Pte. Ltd. (Series 2024-1) catastrophe bond, with the notes spread now priced within the initial guidance. Zenkyoren came back to the catastrophe bond market in March aiming to secure $150 million or more in aggregate Japanese earthquake reinsurance protection from the capital markets. As we later reported, the pr ..read more

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. US primary insurer Travelers recorded catastrophe losses, net of reinsurance, of $712 million in the first quarter of 2024, up 33% year-on-year as a result of continued severe wind and hail activity across parts of the US, the company announced today. Travelers has reported that Q1 2024 pre-tax catastrophe losses of $712 million rose by $177 million on the $535 million recorded in Q1 2023. In the first quarter of 2024, the catastrophe losses added 7.1 points to the combined ratio ..read more

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. Amid high demand for capacity in the primary and reinsurance markets, analysis by Solidum Partners suggests the cyber cat bond segment will continue to grow in importance in the future and that market dynamics “should ensure adequate risk compensation in the medium term”. In a recent report, the Swiss specialist ILS investment manager highlighted how the market for insurance against failure or malfunction of IT systems (resulting either in direct damage to an insured entity or in ..read more

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. The catastrophe bond market is expected to generate investors as much as $17.61 billion in cash through 2024, from a combination of coupon payments and maturities, Aon Securities has estimated, which alongside inflows should be ample to help in absorbing what could be another record year of issuance. Of course, that’s as long as there aren’t any principal losses throughout the year and with an entire hurricane season to go, at this stage there is no certainty on that. But, the dat ..read more

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. Global insurance and reinsurance industry losses from natural catastrophes in the first quarter of 2024 were 10% higher than the most recent 10-year average at $20 billion, amid a continuation of high severe convective storm (SCS) activity in the US, according to reinsurance broker Gallagher Re. The broker’s Q1 2024 natural catastrophe and climate report reveals that during the period, US SCS activity continued to lead the way as the costliest peril to start the year, on the back ..read more

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. Analysts at Goldman Sachs have noted that 2024 is going to be a year where they will be focusing on the potential for inflows of alternative capital or new entrant formation to change the dynamic across reinsurance and specialty insurance markets. Commenting on the large European property and casualty insurance players, including those operating at Lloyd’s, the Goldman Sachs analyst team note that the main reason the January reinsurance renewals were the recoveries in traditional ..read more

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. Louisiana Citizens Property Insurance Corporation, the non-profit insurer of last resort for residential and commercial property policies in the state, has raised its upper target for its new catastrophe bond to as much as $275 million of collateralized named storm reinsurance from the Bayou Re Ltd. (Series 2024-1) issuance. This will be the tenth catastrophe bond sponsored by Louisiana Citizens we now have listed in our Deal Directory. It’s the second catastrophe bond under the B ..read more