alternative capital News

Hannover Re: Capital Markets Are ‘More Friend Than Foe’ to Reinsurers

Pension and hedge funds flush with cash and hungry for yield are creating a market for reinsurers willing to look past the price cuts these investors have inflicted on traditional catastrophe coverage. The growth of insurance-linked products that allow investors to participate …

Catastrophe Bond Issuance Reaches Record Levels: Aon Benfield Report

Property catastrophe bond issuance for the fourth quarter 2014 stood at USD$2.1 billion across six separate transactions, contributing to a record annual property catastrophe bond issuance of USD$8.0 billion, according to a report published by Aon Benfield Securities, the investment …

XL’s McGavick: Hedge Funds Grow in Sophistication in Insurance Arena

Investors such as hedge funds and pensions are becoming more sophisticated as they partner with insurers, XL Group Plc Chief Executive Officer Mike McGavick said. In the past, capital-markets partners would “pat you on the head and they’d say, ‘You …

Renewals See Lower Pricing, Broader Coverage, Reports Guy Carpenter

Guy Carpenter & Company reports reinsurance pricing fell at the January 1, 2015 renewals in many segments, affecting almost all lines of business and geographies, continuing recent renewal trends. According to Guy Carpenter’s 2015 global renewals report, entitled “Shaping the …

Aon Benfield 2015 Reinsurance Outlook Notes ‘Financial Security’ Strength

The roller coaster ride engendered by the entry of large amounts of alternative capital into the reinsurance market – originally seen as a threat – has turned out to be a major factor in strengthening the capital available to reinsurers …

Willis Re Renewals Report Sees Continued Industry ‘Reshaping’

“Relentless rate reductions, low investment returns and the continued influx of alternative capital have offered no respite for reinsurers at the January 1, 2015 renewal season with a reshaping of the global reinsurance industry now starting in earnest,” according to …

Lloyd’s Chairman Nelson on Reinsurance Market, Coverholders, Future Expansion

Lloyd’s Chairman John Nelson is pleased with the current state of the Lloyd’s market. Shortly after Nelson was interviewed at the Reinsurance Rendezvous in Monte Carlo, Lloyd’s announced a $1.67 billion [$2.72 billion] profit for the first half of 2014. …

Guy Carpenter Says Reinsurance Prices Squeezed by Oversupply

Reinsurance prices declined on policies renewed for July 1 amid low losses and as record levels of catastrophe bonds drove an oversupply of capital, according to Guy Carpenter & Co. LLC. There were “price decreases across virtually all geographies and …

One Catastrophe Won’t Scare Away Alternative Capital: S&P Panelists

Catastrophe bond and insurance-linked securities (ILS) issuance have surged to record levels this year thanks to the continuing influx of alternative capital into the reinsurance market, leaving credit analysts and industry executives with questions about the challenges and benefits this …

Weakness in Pricing Lowers Reinsurers’ Q1 2014 Profits

Swiss Re and Hannover Re, the world’s no. 2 and 3 reinsurers, said they saw lower prices in natural disaster reinsurance and April renewals, as they beat profit expectations in the first quarter.   Fewer serious natural disasters, as well …