PGGM’s $400m Leo Re is a private sidecar deal with Munich Re


The recently completed $400 million Leo Re Ltd. 2018-1 collateralised reinsurance sidecar transaction, issued on behalf of one of the funds administered by Dutch pension fund manager PGGM, involves a private ILS transaction between PGGM and reinsurance giant Munich Re.

A PGGM spokesperson confirmed that the latest sidecar arrangement is another private ILS deal it has entered into with Munich Re.

The Leo Re transactions are akin to a privately negotiated slice of Munich Re’s own sidecar transaction, the Eden Re series of deals, with the risks and coverage involved similar.

Kingsway / 1347 backed Insurance Income Strategies targets $52m


Insurance Income Strategies Ltd., a new listed insurance-linked securities (ILS) and collateralized reinsurance investment vehicle backed by 1347 Advisors and Kinsgway Financial, is targeting an initial $52 million capital raise, SEC filings show.

Back in October we covered the initial filings for this new vehicle, which intends at launch to act as a feeder into ILW specialist reinsurance fund manager Cartesian Re, at least for its launch.

A newly updated prospectus filed with the SEC contains details of the fund-raising target, as well as some changes to the initial documents filed, reflecting refinements to the strategy by the management team at Insurance Income Strategies.

CATCo retro fund portfolio return target rises 43% for 2018


Due to the impacts of catastrophic events in 2017, the subsequent industry losses across reinsurance and retrocession and then the higher rates achieved at the January 2018 renewals, Markel CATCo’s listed retrocessional reinsurance fund, the CATCo Reinsurance Opportunities Fund, has a maximum portfolio return target 43% higher than it did last year.

For 2018, Markel CATCo reports that the fund portfolio has an indicative maximum net return of roughly 23% on invested capital, which is 43% higher than the 2017 portfolio maximum net return of 16%.

That’s a significant increase in return potential for the CATCo Reinsurance Opportunities Fund in 2018 and shows that Markel CATCo’s underwriters have secured attractive rate increases for its multi-pillared retro product at the renewal season.

ILS investors endured the onslaught of 2017 catastrophes: Swiss Re


Investors in insurance-linked securities (ILS) and catastrophe bonds “endured the onslaught” of the major catastrophe losses of 2017, “displaying immense fortitude and demonstrating the discipline and importance of alternative capital to the re/insurance market,” according to Swiss Re.

The reinsurance firms ILS focused unit, Swiss Re Capital Markets, discussed the resilience of ILS investors and the ILS business model in its latest quarterly cat bond market report.

ILS “very much engrained” in global risk transfer: Priebe, Guy Carpenter


The expanding base of insurance-linked securities (ILS) capacity is likely to remain an integral part of re/insurers’ capital structure, and even after the devastating impacts of 2017 catastrophe events, the alternative space continues to strengthen its position in the overall risk transfer market.

Recent analysis by reinsurance broker Guy Carpenter (GC) shows that alternative, or third-party reinsurance capital grew by 9% in 2017 to $82 billion, a new high that was achieved despite the major losses experienced in the second-half of the year.

Flood risk can be privatised with help of alternative capital: Greenberg, Chubb


The tail risk that is inherent in the flood peril is one of the reasons the U.S. government has a role in flood insurance and reinsurance, but in time that tail risk could be displaced with the help of both traditional and alternative capital, according to Chubb CEO Evan Greenberg.

Speaking during the Chubb fourth-quarter earnings call, CEO Evan Greenberg discussed the role of the government in flood insurance and his belief that over time flood risk can be privatised with the help of all forms of reinsurance capital.

RenaissanceRe upsizes its Upsilon retro vehicle following 2017 losses


Bermudian reinsurance firm RenaissanceRe fell to a loss for the full-year 2017 after the major catastrophe events of the third and fourth quarters, but the company took advantage of heightened investor demand for its third-party capital vehicles it seems, in particular increasing the size of its retrocessional vehicle Upsilon RFO.

We’d already reported last year that RenaissanceRe had been increasing the size of its third-party investor capital backed retrocessional reinsurance vehicle Upsilon through the mid-year renewals and into the third-quarter.

But it is the capital raise that RenRe has completed for the Upsilon RFO vehicle in time for the January 1st 2018 reinsurance renewals that is most impressive.