A new catastrophe bond is seeking to transfer some US flood risk from the public sector to the private market for the first time. The bond will be issued through FloodSmart Re, a Bermudian special purpose insurer, and will seek to provide $275m of reinsurance protection on behalf of the US National Flood Insurance Program (NFIP). Hannover Re is understood to be acting as a fronting reinsurer. FloodSmart Re will be the first cat bond to solely provide reinsurance coverage for US flood risk, but will apply only to FEMA and the NFIP’s exposure to flood events caused by US named storms.
The top 10 ILS managers expanded their asset bases by just under 7 percent to $67 billion in the first half of 2018 as growth tapered off after the post-loss reload. But Nephila Capital maintained its acceleration after re-opening to new investors, adding $1.2bn in the first half. The top 10 continue to dominate the sector, making up 84 percent of the $81.5 billion of ILS assets overseen by specialist managers.
Markel CATCo has raised an additional $700m of capital from its existing investor base to meet an increased demand for its products at the mid-year renewals this year. The fresh capital takes total assets under management at the firm to a new high of $6.8 billion and is in addition to the more than $2.3 billion that Markel CATCo raised last year following the impacts of major hurricanes, wildfires and other catastrophe loss events.
Brit Insurance has announced its ambition to develop Sussex Capital into a "leading ILS manager", with top quartile performance and relevant scale. Sussex Capital, which was launched on 1 January 2018, writes direct collateralised property catastrophe reinsurance and also provides collateralised reinsurance to Brit’s property treaty portfolio.
There is a “very real possibility” that a cyber cat bond could be offered in the future, according to Pascal Millaire, CEO of CyberCube Analytics. He said there were “plenty of players” who are “thinking about the provision of risk transfer and ILS in the cyber world.” Cyber crime causes economic losses on the order of several hundred billion dollars a year, but this estimate “doesn’t account for what the losses [could] look like in a really bad year,” added Millaire.
Everest Re Group expects to report a charge for net reserve adjustments of approximately $250m, after tax, for the second quarter of 2018. These reserve adjustments are related to prior year catastrophe events relating to the 2017 hurricane events – Harvey, Irma and Maria.
Not-for-profit catastrophe modelling platform Oasis Loss Modelling Framework (Oasis) has announced that all components of its catastrophe modelling software are now open source and downloadable from GitHub free of charge. Oasis is actively making sophisticated catastrophe modelling more accessible in support of global efforts to increase planning for and resilience to natural disasters.
Oasis Loss Modelling Framework
Posted: Monday, July 23rd, 2018