The New York Metropolitan Transportation Authority (MTA) is returning to the catastrophe bond market for its second issuance, a $125m MetroCat Re Ltd (Series 2017-1) cat bond, which will provide the NY MTA’s captive insurer the First Mutual Transportation Assurance Co with parametric storm surge and earthquake reinsurance protection. The NY MTA first came to the cat bond market in 2013, when it secured a $200m, single peril MetroCat Re Ltd (Series 2013-1) deal that provided its captive with reinsurance against New York metropolitan area storm surge that was induced by a named storm or hurricane.
Twelve Capital has completed a $9.63m Dodeka XII cat bond lite deal, according to a Bermuda Stock Exchange listing. This is Twelve's second Dodeka deal of the year and brings the 2017 total of cat bond lites to $613.791m. Last year, $212.81m in cat bond lite transactions were completed during the full year.
Boutique collateralised reinsurance investment start-up Sequant Re has listed on peer-to-peer marketplace the OCMX. Sequant Re has been seeking investment capital while it has been building a team and strategy which aims to offer a more customised experience to investors seeking reinsurance linked returns. Its listing on the OCMX could help the firm reach out to a different class of investor.
Florida's state-backed insurer Citizens has put out firm order terms for its 2017 cat programme that include a further reduction in the overall limit it is placing. Under the final structure total limit to be transferred to the ILS market and traditional reinsurers has dropped from $1.34 billion in last month's submission to $1.33 billion. The total is a little more than half the $2.46 billion of limit purchased by Citizens last year, which included $1.8 billion of cat bond cover, as the carrier cuts its risk transfer programme to reflect a shrinking exposure base.
RenaissanceRe is not expecting to post significant premium growth in its Florida book at the June renewals as pricing pressure persists, CEO Kevin O'Donnell said on a Q1 earnings call. "We continue to expect pricing pressure due to abundant supply of capital relative to market demand," he said. The group posted a 17 percent year-on-year increase in property gross written premium during the first quarter, after writing more quota share and delegated authority business.
The insurtech industry attracted $283m in Q1 2017, according to new research from Willis Towers Watson Securities, which highlights the potential for the $100 billion small business insurance market to experience transformational digital disruption. Perhaps surprisingly the report outlines a reduction in the total InsurTech funding in the first quarter of 2017, but suggests this could be a result of the significant investments in 2016 now reaching the product launch phase.
Willis Towers Watson Securities
Posted: Monday, May 8th, 2017