News review | September 17 2018

The catastrophe bond market remained relatively stable under the threat from Hurricane Florence, with one of the main indices used to track the value of outstanding cat bonds only registering a 1.15% decline at the end of the week. The Swiss Re Cat Bond Index only ended the week down at 88.52, falling from around 89.55 at its previous pricing. The expectation of major reinsurance market losses declined with the winds, as Florence went from an expectation of a Category 4 hurricane landfall down to an actual Category 1 landfall.

Solidum Re has issued $15m of digitised blockchain notes on The International Stock Exchange (TISE) in what is believed to be the first ever such listing on a regulated exchange. The Dom Re notes, due in 2024, were digitalised on a private blockchain called ILSBlockchain, which replaces the role of traditional settlement systems.
Trading Risk

Chinese state reinsurer China Re has announced it will acquire Chaucer Group from Hanover Insurance Group for $865m. HE Chunlei, president of China Re said: “As Asia’s leading reinsurance group pursuing international development, China Re regards Chaucer as an ideal partner. We are... acquiring a top quartile performer in the Lloyd’s market and respect senior management’s achievements to date in growing the business to this point.
China Re

John Neal has been appointed as the new chief executive of Lloyd’s, succeeding current CEO Inga Beale, and will take up his position on 15 October 2018. Neal, most recently group CEO of QBE, said: "The insurance sector is facing many challenges. For 330 years the Lloyd’s market has demonstrated its ability to innovate and adapt, and I look forward to playing my part to ensure this unique marketplace remains at the forefront of global commercial corporate and specialty insurance and reinsurance.”
Lloyd's of London

The National Flood Insurance Program (NFIP) is exposed to $44.5 billion of insurance in-force in North and South Carolina counties under flood warning as Hurricane Florence continues to impact the region. CoreLogic put its early post-landfall estimate of insured losses from wind and storm surge – but not river flooding caused by record rainfalls – at $3 billion to $5 billion.
Insurance Journal

Meanwhile, Typhoon Mangkhut has caused extensive damage across the Philippines, Hong Kong and China's Guangdong province. In Hong Kong, the typhoon caused storm surges of up to 3.38 metres and windspeeds of up to 175km/h, causing widespread damage to property and cars.
South China Morning Post

The insured loss for Japan from Typhoon Jebi will be between $3 billion and $5.5 billion, according to catastrophe modelling agency RMS. (¥340 to ¥620billion). Approximately 80 percent of the loss comes from the Kansai region, where Jebi made a second landfall west of Kobe on 3 September, impacting the Kyoto-Osaka-Kobe conurbation.

Posted: Monday, September 24th, 2018