Pacific Alliance earthquake cat bond target rises to $1.39 billion

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The first catastrophe bonds to benefit all four member nations of the Pacific Alliance trade bloc in Latin America is set to increase in size, as the mooted $1 billion cat bond issuance has now had its target increased to as much as $1.39 billion of earthquake risk coverage for the region.

The first Pacific Alliance catastrophe bond issuance is made up of five series of earthquake-linked capital-at-risk notes, which are being issued through the World Bank’s International Bank for Reconstruction and Development (IBRD) global debt facility and will provide insurance or reinsurance protection to Pacific Alliance member nations.

African Risk Capacity & UN partner to expand climate risk insurance access

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The African Risk Capacity (ARC), an organisation providing parametric sovereign disaster risk insurance and resilience building support to African nations, has entered into a partnership with the United Nations Economic Commission for Africa (ECA) aiming to increase uptake and coverage of climate risk insurance in the region.

The African Risk Capacity (ARC) has been providing drought insurance coverage, structured as a parametric contract, to African states since its launch in 2014.

Rates rises likely for ILS capital backing loss-hit E&S portfolios

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Reinsurance broker Guy Carpenter has said that it expects reinsurance capacity backing catastrophe loss-affected excess & surplus (E&S) line portfolios will see rate rises of as much as 30% at the mid-year renewals, which bodes well for the ILS funds and alternative capital providers that also underwrite E&S portfolios of risk.

There are a number of insurance-linked securities (ILS) funds and strategies that target the excess & surplus (E&S) underwriting market in the United States. As this segment of insurance took heavy losses from the 2017 catastrophes, especially the hurricanes, it is expected that reinsurance capital backing E&S portfolios of risk will secure rate rises at the next renewals.

80% of allocators to stay invested in ILS after losses, 37% to increase

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According to the results of a new survey of 100 institutional asset allocators, the vast majority would choose to remain invested in insurance-linked securities (ILS) and reinsurance investments even after major catastrophe losses, reflecting investor confidence and the growing comfort they have investing in ILS.

The survey of institutional investors and their attitudes to investing in ILS and reinsurance is the second to be undertaken by Clear Path Analysis, following on from a survey last year the results of which showed that institutional investors wanted to expand their allocations to catastrophe risks, revealed some of the key challenges allocators face in ILS, and found that track record and returns are all-important in ILS fund manager selection.

Securis makes organisational changes & promotions. Neil Strong departs

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London-headquartered ILS and reinsurance-linked investments manager Securis Investment Partners has made a number of organisational changes and promotions at senior levels. At the same time, Global Head of Origination Neil Strong has left the firm.

Securis Investment Partners has adjusted its senior management, created a number of new roles and promoted some of its longer-term employees as part of the strategic re-organisation.

With a team of around fifty and having grown relatively rapidly in recent years, Securis, is creating a management platform for future growth, promoting internally to fill new responsibilities that have been created as the firm grew.

Nephila Climate launches to expand ILS managers role in weather risks

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Nephila Capital, the largest insurance and reinsurance-linked fund manager with approximately $11 billion of ILS assets under management, is expanding its role in weather, climate and environmental, social & governance risks with the launch of a dedicated unit, Nephila Climate.

Nephila Climate (NCx) will be dedicated to weather risk transfer and climate resilience products, areas Nephila Capital has been underwriting and accessing investments in for many years. But the launch of this dedicated unit formalises this and provides a platform for future growth.

Dr. Richard Oduntan, based in Bermuda and the head of Nephila’s weather risk investment team, has been named CEO of Nephila Climate.

Praedicat raises $6m for casualty cat model development

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Praedicat, a leading casualty catastrophe risk modelling company, has secured a $6 million Series AA round of investment, from sources including existing investor catastrophe risk modelling specialist Risk Management Solutions, Inc. (RMS) and Jacques Dubois.

Praedicat hopes the investment will accelerate its growth, by funding the development of its latency casualty catastrophe models for a wider set of emerging risks and business activities.

“It is increasingly unacceptable for insurers to manage emerging risks by avoiding or excluding them, and Praedicat’s models facilitate growth for our customers by allowing for broader, tailored coverage of emerging risk, and for innovation in new insurance products for latent risks,” explained to Dr. Robert Reville, CEO of Praedicat.

Доклад: мировой сектор страховых облигаций в 2018 году ожидает дальнейший рост

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Willis Towers Watson Securities, инвестиционное и банковское подразделение Willis Towers Watson, опубликовало ежеквартальные данные по рынку ценных бумаг, связанных со страхованием (ILS).
УкрСтрахованию из отчета мировой консалтинговой компании известно, что существуют предпосылки к росту сектора страховых облигаций, поскольку рынок восстанавливается после разрушительных природных катастроф 2017 года, обновляет утраченный капитал, а инвесторы проявляют растущий интерес к продуктам ILS

2018 could see a “brutal battle” between alternative & traditional reinsurance: Willis

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Alternative reinsurance capital continues to expand, with non-life insurance-linked securities (ILS) capital reaching $88 billion at year-end 2017. And with growth expected to continue, there could be a “brutal battle” between ILS and traditional capacity, according to Willis Towers Watson Securities.

Data from capital markets and insurance-linked securities (ILS) brokerage unit, Willis Towers Watson Securities, estimates that the volume of non-life ILS capital in global reinsurance markets increased by 17% in 2017, despite the heavy volume of catastrophe losses.

ILS capital grew 17% to $88bn in 2017, despite losses: Willis Towers Watson Securities

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According to the latest market data from capital markets and insurance-linked securities (ILS) brokerage unit Willis Towers Watson Securities (WTWS), the amount of non-life ILS capital in reinsurance markets grew by a stunning 17% over the course of 2017, to reach $88 billion.

This is despite the major catastrophe losses that the market experienced in the third and fourth-quarters of last year, which WTWS notes is a demonstration that, “The ILS market was able to withstand the 2017 natural catastrophe losses as funds diligently reached out to their investors and risk partners ensuring an orderly and supportive environment.”