News review | October 08 2018

Three cat bond lites have been extended, according to Bermuda Stock Exchange listings. The maturity date of the Loma Re Series 2013-1 Class C has been extended until 8 January. Meanwhile Hannover Re has extended the maturity of a $50m Seaside Re 2017-3 transaction that it fronted to 31 December. The deal was initially due to mature in January 2018 but was extended to 15 August 2018. The exchange also reported that a portion of the $140m Fibonacci Re 2017-1 ILS issuance had been extended until January 2019.
Trading Risk

Swiss Re has developed a standalone haze insurance solution for businesses operating in Singapore. Numerous severe haze outbreaks have struck Southeast Asia over the past two decades. The solution is based on a parametric trigger, with the trigger for pay-outs based on Singapore's National Environment Agency (NEA) Pollutant Standard Index (PSI) levels rather than loss or damage to physical assets.
Swiss Re Corporate Solutions

Reinsurance pricing is likely to come under further pressure at 1 January 2019 renewals due to below-average catastrophe losses over 2018 and a sustained influx of alternative capital, according to investment bank Goldman Sachs. Property catastrophe modelling firms estimate that insured industry losses over the third quarter of 2018 will amount to between $16 billion and $20 billion. These losses will largely be contained in the primary layers, Goldman Sachs said.
Reinsurance News

The UN Intergovernmental Panel on Climate Change (IPCC) has released its latest report, which considers the impacts of global warming of 1.5 °C above pre-industrial levels. Among its findings is the likelihood of increased flooding in coastal regions as a result of increases in heavy precipitation associated with tropical cyclones combined with increased sea levels. And while there was no evidence to suggest an over increase in the global number tropical cyclones, it does predict a rise in very intense cyclones.
UN Intergovernmental Panel on Climate Change

Lancashire has announced it has an accumulation of attritional losses as a result of exposures to a number of recent natural catastrophe events, including hurricane Florence, and typhoons Jebi, Mangkhut and Trami, with the company's marine book hit particularly hard. The aggregate estimated net ultimate losses for these events are expected to be in a range of $25m to $45m, after reinsurance recoveries. The loss estimates include Lancashire’s aggregate exposures through its Bermuda, UK and Lloyd’s operations.
Lancashire Group

At the time of writing, Tropical Storm Michael was forecast to intensify to a category one hurricane and make landfall on the Florida Panhandle, close to the state capital Tallahassee later this week. According to the National Hurricane Center a storm surge watch has been issued for the Panhandle and Big Bend and a hurricane watch is in place with the Alabama-Florida border eastward.
National Hurricane Center
Tropical Storm Risk

PERILS AG has slightly decreased its final loss estimate for Extratropical Cyclone Xavier, which primarily affected Germany on 5 October 2017. PERILS’ estimate of the insured property market loss for Xavier, based on loss data collected from affected insurers, is €324m. Xavier was a fast-moving and violent storm. It occurred very early in the European winter storm season which meant that many trees were still heavy with leaves and therefore more prone to being blown over than had the same winds occurred during the winter months.

Posted: Monday, October 8th, 2018