Best of Artemis, week ending August 25th 2024

Here are the ten most popular news articles, week ending August 25th 2024, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics.To ensure you never miss a thing or get our email alerts for every article we publish.The alternative capital partnership matures.

But what about the reinsurance cycle? As the busy reinsurance conferencing season approaches, kicked off in September by our Artemis London 2024 ILS market event and soon after the Monte Carlo Reinsurance Rendezvous, it’s perhaps no surprise that talk of the reinsurance market cycle re-emerges.Ariel Re establishing Ariel Re Capital Partners entity with third-party capital focus Ariel Re appears set to further formalise its activities in third-party capital management and helping investors access its risk under a new brand, with an entity named Ariel Re Capital Partners being established by the firm.Leadline Capital Partners launched by Ascot as dedicated third-party capital unit Ascot Group has launched a new dedicated third-party capital management platform named Leadline Capital Partners, as it looks to expand its activities in the space and brings on new investors to support it.

Clear Blue responded “quickly and aggressively” to limit Vesttoo impact: KBRA The management of fronting specialist Clear Blue Insurance are praised for the rapid and determined response to the issues that arose when the company found itself caught up in the reinsurance letter of credit (LOC) fraud perpetrated by Vesttoo, according to rating agency KBRA.Toa Re Europe’s $25m Silver Crane cat bond triggered in full by Turkey quake Toa Re Europe, the Switzerland-based European reinsurance arm of Japanese group Toa Reinsurance Company Ltd., has benefited from a full payout under its $25 million Silver Crane private catastrophe bond transaction, after the notes were triggered by industry losses from the Turkey earthquake event from early 2023.Hannover Re’s cat bond fronting hits record level, collateralised ILS activity expands in H1 2024 Hannover Re has seen continued success in its business servicing and facilitating transactions in the collateralised reinsurance and insurance-linked securities (ILS) market in the first-half of 2024, with it notably beating its own full-year record for catastrophe bond limit fronted for already this year.

Trapped capital decline means ILS growth is stronger than you think: AM Best Over the last couple of years the amount of capital trapped in collateralized reinsurance, retrocession and other insurance-linked securities (ILS) has declined significantly, which makes for a much larger and more impactful ILS capital market than you might think, AM Best rightly points out.Florida carriers better protected by reinsurance, reporting lower attritional losses: KBRA Painting a picture of an insurance marketplace recovering after a challenging period, rating agency KBRA notes that reporting suggests Florida property insurance carriers are in a much better place, while the reinsurance market has responded and helped carriers increase their protection in advance of the expected busy hurricane season.ILS is key capacity for Beat under Ambac.

Casualty an opportunity: Cavanagh & Anand Speaking with Artemis after the completion of Ambac Financial Group’s acquisition of a 60% stake in Beat Capital Partners, executives John Cavanagh and Naveen Anand told us that third-party capital in general and the ILS market are seen as key capacity for the group going forwards.Allstate’s aggregate catastrophe bond cat loss run-rate only at $1.3bn after July We’ve learned that Allstate’s annual aggregate catastrophe losses that are applicable under the terms of its Sanders Re catastrophe bond program has reached $1.3 billion after July 2024, so it is much lower than the accumulation of pre-tax catastrophe losses the company has suffered during the current risk period.This is not every article published on Artemis during the last week, just the most popular among our readers over the last seven days.

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Publisher: Artemis