As risks in the reinsurance world have grown more complex and investors are seeking greater yields, the 144a catastrophe bond market is on track for a record issuance year in 2021. In the first six months of the year, USD 7.9 billion in new bond issuance entered the market, via 27 unique transactions for 26 different sponsors. First-time sponsors include reinsurers, Florida ... Continue Reading »
Capital Markets
Chart: State of the 144A P&C Catastrophe Bond Market: 2008-2021YTD
In the first half of 2021, there was a total of USD 7.9 billion in new issuances – a 25 percent increase over the same period in 2020. The total outstanding risk capital increased by USD 2 billion (accounting for maturities) over 2020 levels. ... Continue Reading »
Chart: Estimated Alternative Reinsurance Sector Capital
The reinsurance sector continues to demonstrate capital strength and resilience in light of the significant disrupters it encountered in 2020. New capital raises by new and existing participants contributed to the 2020 dedicated capital estimate. ... Continue Reading »
Chart: Catastrophe Bond Issuance and Capital Outstanding
Chart shows 144A P&C catastrophe issuance and capital outstanding for the years 2010 through year-end 2020, based on data from GC Securities’* proprietary database. ... Continue Reading »
Reinsurance Industry Capital at Year-End 2020
Overall, traditional dedicated reinsurance capital for year-end 2020 was estimated at USD 397 billion by Guy Carpenter and A.M. Best, a marginal increase on year-end 2019. Favorable valuations of asset levels and capital initiatives saw capital levels recover from the decline witnessed at mid-year 2020. However, reinsurers struggled to achieve positive returns on equity due to ... Continue Reading »
Catastrophe Bond Activity: Market Hardening
There will continue to be upward momentum of rates in 2021, with particular volatility in the retrocession space, although how long these conditions last is uncertain, according to Des Potter, Managing Director, Insurance-Linked Securities (ILS) Origination and Structuring at GC Securities*. ... Continue Reading »
Catastrophe Bond Activity: Looking Towards 2021
Catastrophe bonds are set to buck the trend elsewhere in the insurance-linked securities (ILS) market, with a strong issuance pipeline for the fourth quarter of 2020 and first quarter of 2021, according to Des Potter, Managing Director, ILS origination and structuring at GC Securities*. ... Continue Reading »
September 2020 Dedicated Reinsurance Capital Update
Guy Carpenter and A.M. Best have re-issued our joint dedicated reinsurance capital estimate for September 2020 of USD 471 billion, down 2.4 percent since year-end 2019. The recent update and change is the result of additional analysis and mid-year reporting from our initial June forecast. ... Continue Reading »
Capital and The Insurance Industry During COVID-19
Vicky Carter, Guy Carpenter Chairman of Global Capital Solutions, International, recently spoke to Mark Geoghegan, Editor at The Voice of Insurance about capital in the (re)insurance industry during the COVID-19 pandemic. ... Continue Reading »
Private Equity and COVID-19: Lessons From the Global Financial Crisis
As businesses seek to address both the immediate and long-term effects of COVID-19 on their operations, the reinsurance industry is at the forefront of conversations to create a forward-looking solution for pandemic risk in conjunction with policyholders, insurance markets and key policymakers. Countries across the developed and emerging world are trying to manage the severe ... Continue Reading »
