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Virus deaths to trigger margin calls on longevity swaps
Virus deaths to trigger margin calls on longevity swaps
For the billions of longevity swaps already in existence, the uptick in UK deaths means pension schemes will likely have to post more collateral to the re-insurers that provide these swaps if mortalities increase faster than models underpinning the transactions had predicted.
#ART#Longevity#Pensions#Swaps
·ifre.com·
Virus deaths to trigger margin calls on longevity swaps
Coronavirus deaths may trigger longevity swap margin calls for pensions
Coronavirus deaths may trigger longevity swap margin calls for pensions
While the immediate outlook for the longevity swap market is expected to be an on-hold status, as pensions and their consultants wait to see the full impacts of the pandemic, this could result in a much more active year in 2021 as things settle down and the forward-looking mortality rate is better understood.
#ART#Longevity#Pensions#Swaps
·artemis.bm·
Coronavirus deaths may trigger longevity swap margin calls for pensions
SCOR relaunches Atlas Capital 2020 cat bond at smaller size, higher pricing
SCOR relaunches Atlas Capital 2020 cat bond at smaller size, higher pricing
SCOR has quickly relaunched its delayed Atlas Capital Reinsurance 2020 DAC (Series 2020-1) catastrophe bond transaction, bringing it back to market at a slightly smaller size of $150 million, but with pricing boosted to better compensate and attract investors.
#ART#CAT#ILS
·artemis.bm·
SCOR relaunches Atlas Capital 2020 cat bond at smaller size, higher pricing
Lack of exclusions, poor wordings the Covid-19 BI threats to reinsurers & ILS
Lack of exclusions, poor wordings the Covid-19 BI threats to reinsurers & ILS
The majority of analysts and observers do not believe that the reinsurance and insurance-linked securities (ILS) industry faces a tidal wave of business interruption claims as a result of the coronavirus pandemic. Ongoing legal action continues to push for claims to be honoured, but in the majority of cases adequate exclusions do exist and it is viewed as potentially fatal to the industry if these were overruled and a flood of claims forced through into property insurance policies.
#ART#CAT#ILS#Reinsurance#Pandemic
·artemis.bm·
Lack of exclusions, poor wordings the Covid-19 BI threats to reinsurers & ILS
Swiss Re seeks $200m named storm retro with Matterhorn Re 2020-3 cat bond
Swiss Re seeks $200m named storm retro with Matterhorn Re 2020-3 cat bond
Global reinsurance company Swiss Re is back with what will be its fourth catastrophe bond in less than one year, as it seeks another $200 million or greater of U.S. named storm retrocessional support from the capital markets with Matterhorn Re Ltd. (Series 2020-3).
#ART#CAT#ILS
·artemis.bm·
Swiss Re seeks $200m named storm retro with Matterhorn Re 2020-3 cat bond
Alternative reinsurance capital returned to growth in Q4 2019: Aon
Alternative reinsurance capital returned to growth in Q4 2019: Aon
Alternative reinsurance capital, for deployment into insurance-linked securities (ILS), collateralised contracts and catastrophe bonds, returned to outright growth in the fourth-quarter of 2019, ending the year up 2% on the prior quarter, but still -2% down on the end of the previous year.
#ART#ILS#CAT
·artemis.bm·
Alternative reinsurance capital returned to growth in Q4 2019: Aon
New York MTA to renew MetroCat Re parametric cat bond. Launches $100m deal
New York MTA to renew MetroCat Re parametric cat bond. Launches $100m deal
The New York Metropolitan Transportation Authority (MTA) has returned to the catastrophe bond market for the third time, seeking to sponsor an at least $100 million renewal of its soon to mature parametric cat bond coverage with a new MetroCat Re Ltd. (Series 2020-1) transaction.
#ART#CAT#ILS
·artemis.bm·
New York MTA to renew MetroCat Re parametric cat bond. Launches $100m deal
Natural catastrophes are becoming more frequent and the intensity of certain perils is estimated to increase
Natural catastrophes are becoming more frequent and the intensity of certain perils is estimated to increase
Attributing a single event to climate change remains difficult at present but the long-term trend is clear: natural catastrophes are becoming more frequent and the intensity of certain perils is also estimated to increase. Guy Carpenter’s new report, Protecting our Planet and the Public Purse, highlights the expected geographic distribution of public sector risks as global temperatures increase.
#ART#CAT#ILS#Climate
·gccapitalideas.com·
Natural catastrophes are becoming more frequent and the intensity of certain perils is estimated to increase
Two Resilience Re private cat bond maturities extended another year
Two Resilience Re private cat bond maturities extended another year
The maturity dates for two private catastrophe bonds that were issued through the Willis Towers Watson operated Resilience Re Ltd. platform have been extended by another year, to allow for ongoing development of losses to the subject business.
#ART#CAT#ILS
·artemis.bm·
Two Resilience Re private cat bond maturities extended another year
SCOR's Atlas Capital 2020 cat bond lifted to $200m at top-end price
SCOR's Atlas Capital 2020 cat bond lifted to $200m at top-end price
SCOR, the global reinsurance company, has successfully priced its latest catastrophe bond Atlas Capital Reinsurance 2020 DAC (Series 2020-1) at its original target size of $200 million, but with pricing now at the top-end of an elevated guidance range.
#ART#CAT#ILS
·artemis.bm·
SCOR's Atlas Capital 2020 cat bond lifted to $200m at top-end price
BA trustees disembark as destination comes into view - DB & Derisking
BA trustees disembark as destination comes into view - DB & Derisking
A letter to APS members from the scheme secretary late last month reveals that the decision to shrink the board from 12 members to eight was justified with reference to its £4.4bn buy-in with Legal & General in September 2018, which is expected to reduce its workload. And with the funding level in APS showing a surplus, BA is not currently required to make contributions to APS.
#ART#Longevity#Pensions
·pensions-expert.com·
BA trustees disembark as destination comes into view - DB & Derisking
£37bn a year to flow from DB to bulk annuity providers - DB & Derisking
£37bn a year to flow from DB to bulk annuity providers - DB & Derisking
Demand for buy-ins and buyouts is predicted to average £37bn a year for the next decade, according to new analysis. Hymans Robertson’s projections would see half of all defined benefit schemes transfer their entire liabilities to bulk annuity providers, known as a full buyout, in the next 20 years.
#ART#Longevity#Pensions
·pensions-expert.com·
£37bn a year to flow from DB to bulk annuity providers - DB & Derisking
IDA payments from PEF pandemic bonds & swaps to begin next week
IDA payments from PEF pandemic bonds & swaps to begin next week
Payments from the World Bank’s Pandemic Emergency Financing Facility (PEF) to member countries of the International Development Association (IDA) could begin as early as next week, as the capital lost by holders of the triggered pandemic catastrophe bonds and swaps looks set to be mobilised rapidly.
#ART#ILS#CAT#Pandemic
·artemis.bm·
IDA payments from PEF pandemic bonds & swaps to begin next week
UK TPR signals renewed focus on sponsor affordability
UK TPR signals renewed focus on sponsor affordability
While the UK TPR guidance encourages a flexible approach to triennial valuations and recovery plans, it cautions that companies pausing contributions should not restart dividend payments to shareholders until they have put their pension schemes back on track to meet their long-term goals.
#ART#Pensions#Pandemic
·pensions-expert.com·
UK TPR signals renewed focus on sponsor affordability
Swiss Re's new Matterhorn Re 2020-3 cat bond upsized to $215m
Swiss Re's new Matterhorn Re 2020-3 cat bond upsized to $215m
The latest catastrophe bond to be sponsored by reinsurance firm Swiss Re has been successfully upsized 7.5% at pricing, we can reveal, with the Matterhorn Re Ltd. (Series 2020-3) transaction now set to secure the company $215 million of U.S. named storm retrocession.
#ART#CAT#ILS
·artemis.bm·
Swiss Re's new Matterhorn Re 2020-3 cat bond upsized to $215m
Florida Citizens targets $300m+ Everglades Re II 2020 cat bond
Florida Citizens targets $300m+ Everglades Re II 2020 cat bond
Florida Citizens, the state-supported insurer of last resort, is back in the catastrophe bond market for what will be its seventh issuance, seeking support for a $300 million or greater Everglades Re II Ltd. (Series 2020-1 & 2020-2) deal that will also expand coverage to the Citizens personal lines account for the first time.
#ART#ILS#CAT#UnitedStates
·artemis.bm·
Florida Citizens targets $300m+ Everglades Re II 2020 cat bond
Catahoula Re cat bond upsized 20% to $60m for Louisiana Citizens
Catahoula Re cat bond upsized 20% to $60m for Louisiana Citizens
The latest catastrophe bond to be sponsored by non-profit state mandated insurer of last resort Louisiana Citizens Property Insurance Corporation has been successfully upsized 20%, with the Catahoula Re Pte. Ltd. (Series 2020-1) now a $60 million transaction.
#ART#ILS#CAT
·artemis.bm·
Catahoula Re cat bond upsized 20% to $60m for Louisiana Citizens
Allstate returns with second Sanders Re II cat bond of 2020
Allstate returns with second Sanders Re II cat bond of 2020
Allstate has returned to the catastrophe bond market for a second time in 2020, something the company has not done since 2017. With a $150 million Sanders Re II Ltd. (Series 2020-2) transaction that seeks Florida specific multi-peril reinsurance for the insurers subsidiaries in the state.
#ART#ILS#CAT#UnitedStates
·artemis.bm·
Allstate returns with second Sanders Re II cat bond of 2020
Financial Engineering: A Flexible Longevity Bond to Manage Individual Longevity Risk
Financial Engineering: A Flexible Longevity Bond to Manage Individual Longevity Risk
This paper proposes an individual longevity bond, a combined investment and insurance product to allow individuals to flexibly manage their longevity risk. The bond is a post-retirement product that combines a lifetime income along with a flexible death benefit to meet bequest and liquidity needs. The longevity bonds are issued through a special purpose vehicle which is fully collateralized with a fixed interest portfolio. We apply financial and actuarial models and techniques that provide transparent pricing for interest rate and mortality risk, the construction of optimally immunized bond portfolios and the determination of a loading and solvency margin for systematic longevity risk. We also quantify the natural hedging benefits of the individual bond cash flows arising from the flexible inclusion of both survival dependent income benefits and mortality dependent bequest benefits payable on death.
#ART#Longevity#Pensions
·cepar.edu.au·
Financial Engineering: A Flexible Longevity Bond to Manage Individual Longevity Risk
MetroCat Re 2020 parametric cat bond pricing lifted on investor response
MetroCat Re 2020 parametric cat bond pricing lifted on investor response
Price guidance for the New York Metropolitan Transportation Authority’s (MTA) new catastrophe bond has been increased after investor’s fed back that the initial coupon was not sufficient, we’re told, with the parametric MetroCat Re Ltd. (Series 2020-1) cat bond transaction now offering a higher return.
#ART#ILS#CAT
·artemis.bm·
MetroCat Re 2020 parametric cat bond pricing lifted on investor response
Insurer investment risks could drag on buyout volumes
Insurer investment risks could drag on buyout volumes
Several of the eight UK bulk annuity providers have high exposures to BBB-rated fixed income assets, loans, mortgages and property. Widening credit spreads, a result of the Covid-19 pandemic, are currently fuelling a buyout bonanza for well-positioned DB schemes. But a longer recession and credit downgrades could affect some insurers’ ability to sustain huge volumes of new business in the medium term. Downgrades could cause ‘fallen angel’ companies to drop from investment grade to high yield, meaning insurers may have to divert new capital to maintain their position under the Solvency II regime.
#ART#Longevity#Pensions
·pensions-expert.com·
Insurer investment risks could drag on buyout volumes
Hiscox buys $100m of industry loss warranty (ILW) protection
Hiscox buys $100m of industry loss warranty (ILW) protection
Hiscox Group, the Bermuda headquartered re/insurer, has acquired additional retrocessional reinsurance protection against peak catastrophe risks with a $100 million slug of industry loss warranty (ILW) based protection secured in advance of the all-important hurricane season.
#ART#CAT#ILS#UnitedStates
·artemis.bm·
Hiscox buys $100m of industry loss warranty (ILW) protection
$100m MetroCat Re cat bond prices 16% above mid-point of initial guidance
$100m MetroCat Re cat bond prices 16% above mid-point of initial guidance
The New York Metropolitan Transportation Authority’s (MTA) new MetroCat Re Ltd. (Series 2020-1) catastrophe bond has now been priced, but at the top-end of the revised guidance after investors sought a higher return for the risk, with the deal also sticking at $100 million in size.
#ART#ILS#CAT
·artemis.bm·
$100m MetroCat Re cat bond prices 16% above mid-point of initial guidance
CEA now targets up to $700m of reinsurance from new Sutter Re cat bond
CEA now targets up to $700m of reinsurance from new Sutter Re cat bond
California’s not-for-profit residential earthquake insurer the California Earthquake Authority (CEA) is hoping to significantly upsize its latest catastrophe bond issuance, with the Sutter Re Ltd. (Series 20201- & 2020-2) issuance now targeting up to $700 million of reinsurance protection.
#ART#CAT#ILS
·artemis.bm·
CEA now targets up to $700m of reinsurance from new Sutter Re cat bond