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$10m U.S. wind industry loss transaction issued on Tullett Prebon ILN platform

Electronic and voice interdealer broker Tullett Prebon has successfully completed another issuance through its Insurance Linked Notes (ILN) platform, with a $10 million U.S. wind industry loss instrument arranged, securitised and issued to investors. The platform allows for the securitisation and syndication of industry loss trigger instruments, so typically retrocessional reinsurance arrangements. The latest transaction totals $10 million across protection buyer and seller notes, covering U.S. wind on a per-occurrence basis. The deal features two trigger points of $30bn and $40bn, which could be to define the range of industry losses between which it would payout.

#ART #CAT #ILS

·artemis.bm·Sep 11, 2020

$10m U.S. wind industry loss transaction issued on Tullett Prebon ILN platform

Bulk annuity volumes hit £12.6bn in H1 2020

Total buy-in and buyout volumes reached £12.6bn in the first half of this year, the second-highest value on record, according to analysis published by LCP. This figure represents a 50 per cent increase when compared with the £7.8bn achieved in the first half of 2018. The Pension Insurance Corporation, Legal & General and Aviva together accounted for 78 per cent of total volumes.

#ART #Longevity #Pensions

·pensions-expert.com·Sep 12, 2020

Bulk annuity volumes hit £12.6bn in H1 2020

Tremor to run live cat auctions for every hurricane, including today for Sally

Tremor Technologies, the insurtech company that offers a technology-based programmatic insurance and reinsurance risk transfer marketplace, is set to make its marketplace available for every major hurricane threat, with live cat auctions set to be run by the insurtech, including today for hurricane Sally. Tremor’s live cat auctions provide a simple marketplace venue for buyers and sellers of protection to meet, efficiently able to close trades while a hurricane is live and in the water. Protection buyers and sellers are able to choose from an industry loss trigger for the specific named storm and enter their bids anonymously.

#ART #ILS #CAT

·artemis.bm·Sep 15, 2020

Tremor to run live cat auctions for every hurricane, including today for Sally

Alternative reinsurance capital flat at $91bn through Q2 2020: Aon

The amount of alternative capital in the global reinsurance market remained flat through the second-quarter of 2020 at $91 billion. Overall, global reinsurance capital increased through the second-quarter of 2020, as traditional reinsurer capital levels recovered from the hit to their assets caused by the COVID-19 pandemic. Traditional reinsurance capital currently stands at $519 billion, which is partly thanks to fresh capitalisation efforts as well as the recovery from the pandemic hit. Alternative reinsurance capital remains impacted by trapped capital from historical losses.

#ART #ILS #CAT

·artemis.bm·Sep 16, 2020

Alternative reinsurance capital flat at $91bn through Q2 2020: Aon

GC / MMC’s Isosceles ILS platform in $25m private cat bond issuance

Isosceles Insurance Limited, the transformer and segregated cell structure operated by Marsh & McLennan Companies and reinsurance broker Guy Carpenter to issue privately placed insurance-linked securities or catastrophe bonds has completed issuance of another transaction. This $25 million Isosceles Insurance Ltd. (Series 2020-C1) transaction is the second deal to come to light from the issuance platform.

#ART #ILS #CAT

·artemis.bm·Sep 21, 2020

GC / MMC’s Isosceles ILS platform in $25m private cat bond issuance

Barclays Bank coughs up £750m in unusual DRC move

In an unusual arrangement, the Barclays Bank UK Retirement Fund (UKRF) deficit recovery plan remains on track through a self-investment, as the scheme subscribed to a £750m bond issued by an entity of the banking group. The bond, which is backed by UK government gilts, entitles the UKRF to twice-yearly interest payments, with full repayment in cash of the £750m in three equal instalments of £250m in 2023, 2024 and 2025.

#Pensions #ART #Longevity

·pensions-expert.com·Sep 23, 2020

Barclays Bank coughs up £750m in unusual DRC move

Smiths Group completes £142m buy-in with Aviva

Smiths Group, an industrial technology company, has completed a £142m buy-in transaction with Aviva for the TI Group Pension Scheme. The deal will see Aviva insuring the defined benefit pension liabilities of 1,224 pensioner members, removing the investment and longevity risk of these individuals from the pension fund.

#ART #Pensions #Longevity

·pensions-expert.com·Sep 25, 2020

Smiths Group completes £142m buy-in with Aviva

Cat bond market in a strong position with busy pipeline: Schultz, Aon

The catastrophe bond market pipeline is expected to be busy through the third and fourth quarters of 2020, according to Aon Securities CEO Paul Schultz, which sets the stage for potential near-record levels of issuance this year. The latest annual insurance-linked securities (ILS) report from Aon Securities, the capital markets division of the insurance and reinsurance broker, highlights robust issuance over the twelve month period to June 30th 2020. In total, the company reports $9 billion of catastrophe bond issuance and record quarters in Q4 2019 and Q1 2020, suggesting the market is ripe for further growth as the overhang created by the COVID-19 pandemic disappears.

#ART #CAT #ILS #Pandemic

·artemis.bm·Sep 30, 2020

Cat bond market in a strong position with busy pipeline: Schultz, Aon

GIC & MassMutual buy out Blackstone’s stake in Rothesay Life

Global investment firm GIC and mutual life insurer Massachusetts Mutual Life Insurance Company (MassMutual) have agreed to acquire a 36% shareholding in Rothesay Life from investor Blackstone in a deal valued at £5.75 billion. Under the terms of the transaction, GIC and MassMutual will each become equal 49% shareholders. The three firms have been shareholders in Rothesay Life, which insures defined benefit, or final salary pension schemes, since 2013.

#ART #Longevity #Pensions

·reinsurancene.ws·Sep 30, 2020

GIC & MassMutual buy out Blackstone’s stake in Rothesay Life

Positive cat bond market momentum continues: Q3 2020 Report

The catastrophe bond market saw continued positive momentum throughout the third-quarter of 2020 and despite continued financial market uncertainty and volatility as a result of the Covid-19 pandemic, the result was an above-average quarter of issuance, according to the latest report and data from Artemis. Year-on-year, issuance grew by roughly $214 million and demonstrating the appetite for liquid ILS investments even under the shadow of a pandemic, Q3 2020 issuance has been the third highest of the past decade.

#ART #CAT #ILS

·artemis.bm·Oct 1, 2020

Positive cat bond market momentum continues: Q3 2020 Report

Global catastrophe industry loss index to be created by CRESTA

The CRESTA organisation will soon launch a global industry loss index solution, that will provide insured loss data and event descriptions for natural catastrophe insured loss events around the world. CRESTA was established by the insurance and reinsurance industry in 1977 as an independent body for the technical management of natural catastrophe insurance. Now managed by PERILS CRESTA AG, a subsidiary of Zurich-based provider of catastrophe loss data and indices for risk transfer PERILS AG, the organisation has announced the impending launch of the CRESTA Industry Loss Index, or CLIX for short.

#ART #ILS #CAT

·artemis.bm·Oct 2, 2020

Global catastrophe industry loss index to be created by CRESTA

Minnesota Life seeks $100m La Vie Re mortality catastrophe bond

Minnesota Life Insurance Company, a life insurer and part of the Securian Financial Group, looks to the capital markets for $100 million of more of mortality related life reinsurance through a three-year deal issued by Bermuda-based La Vie Re Limited. The proceeds from the single $100 million or greater tranche of Series 2020-1 notes will be used to collateralize an excess-of-loss reinsurance agreement between it and Securian’s Vermont-based captive reinsurer 1880 Reinsurance. It will reportedly have an initial expected loss of 0.17% on a modelled basis with the loss ratio trigger set at 110%.

#ART #CAT #ILS #Mortality

·artemis.bm·Oct 2, 2020

Minnesota Life seeks $100m La Vie Re mortality catastrophe bond

Ripple Wins US Patent for New Oracle-Based Smart Contract Design

Ripple Labs received a patent for a smart contract that can use oracles to connect a distributed platform to a variety of different real-world data. Originally filed in June 2018, one example of a use case provided includes using the smart contracts to automatically settle options contracts when pre-agreed conditions are met, such as a company's debt-to-equity ratio hitting a certain threshold. Another example, for the oil industry, is feeding data on the density of a specific crude oil shipment to help a smart contract determine whether to make a trade. http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-adv.htm&r=1&f=G&l=50&d=PALL&S1=10,789,068&OS=10,789,068&RS=10,789,068

#Fintech #Blockchain #SmartContracts #ART

·coindesk.com·Oct 2, 2020

Ripple Wins US Patent for New Oracle-Based Smart Contract Design

Fidelis returns for second Herbie Re cat bond, a $175m multi-peril deal

Fidelis has returned to the catastrophe bond market for its second transaction, as the company looks to embed the capital markets more deeply within its reinsurance program arrangements with a $175 million Herbie Re Ltd. (Series 2020-2) issuance. Fidelis is seeking to secure three layers of reinsurance coverage, all on an industry loss trigger basis against losses from named storms or earthquakes across the United States and territories including Puerto Rico, the U.S. Virgin Islands, and District of Columbia. All three tranches will provide named storm and earthquake reinsurance protection, using a territory weighted industry loss index reported by PCS.

#ART #ILS #CAT

·artemis.bm·Oct 5, 2020

Fidelis returns for second Herbie Re cat bond, a $175m multi-peril deal

Don't rule out more longevity swaps by year-end: Aon

While 2020 is cited as a “difficult” year by insurance and reinsurance broker Aon, it notes that, the risk settlement market, including both bulk annuities and longevity swaps, could still reach £50 billion by the end of 2020 – while final volumes could yet make it a record year. Activity levels have fluctuated through the first three-quarters of the year. But a late surge in deal activity is anticipated, as pension schemes look to take advantage of pricing in the insurance and reinsurance market to complete deals that transfer longevity risk, or full scheme funding risks, to others.

#ART #Longevity #Pensions

·artemis.bm·Oct 5, 2020

Don't rule out more longevity swaps by year-end: Aon

Jamaica still aims for catastrophe bond with World Bank support

The Government of Jamaica will continue to work alongside the World Bank and other multi-lateral groups to increase its disaster insurance protection this year, even though its priority is a swift economic recovery after the Covid-19 pandemic. Jamaica had been planning a catastrophe bond issuance for this year, to enhance its disaster insurance arrangements. The cat bond deal, which has been a work-in-progress for some years now, was forcibly delayed by the Covid-19 pandemic, as financial market volatility due to the coronavirus outbreak put the Caribbean island nations’ first cat bond issuance on-hold, the country’s finance minister previously said.

#ART #CAT #ILS #Pandemic

·artemis.bm·Oct 9, 2020

Jamaica still aims for catastrophe bond with World Bank support

CEA's new Ursa Re II catastrophe bond triples in size to $775m

The California Earthquake Authority (CEA) has elected to significantly upsize its latest catastrophe bond issue, with its new Ursa Re II Ltd. (Series 2020-1) transaction now priced at $775 million in size, more than three times the initial amount of notes offered to investors. At the September launch, the new deal was marketed as seeing a seeking a $250 million source of fully collateralised earthquake reinsurance protection for the not-for-profit residential earthquake insurer for California.

#ART #ILS #CAT

·artemis.bm·Oct 12, 2020

CEA's new Ursa Re II catastrophe bond triples in size to $775m

Artex vehicle issues $30m Tenby private cat bond transaction

The Artex Risk Solutions owned segregated account reinsurance transformer platform, Artex SAC Limited, has completed issuance of the first private catastrophe bond seen from the vehicle in 2020, with a $30 million Artex SAC Limited – Tenby Notes transaction.

#ART #ILS #CAT

·artemis.bm·Oct 13, 2020

Artex vehicle issues $30m Tenby private cat bond transaction

USAA returns for $300m Residential Re 2020-2 catastrophe bond issue

USAA is back in the catastrophe (CAT) bond market with its second transaction of 2020, a Residential Reinsurance 2020 Limited (Series 2020-2) deal that seeks $300 million of multi-year, fully collateralized, multi-peril CAT reinsurance protection from the capital markets. USAA remains the most prolific and consistent of CAT bond sponsors in the market’s history, with typically two issuances per-year helping it to become the most regular of CAT bond market issuers for more than a decade now.

#ART #ILS #CAT

·artemis.bm·Oct 15, 2020

USAA returns for $300m Residential Re 2020-2 catastrophe bond issue

Collateralized reinsurance to contract further, liquid ILS strategies to prosper: Aon

The collateralized reinsurance market segment of insurance-linked securities (ILS) is expected to contract further, according to broker Aon, although it will likely remain the largest segment of ILS for the foreseeable future it seems. This is partly due to the expectation of more trapping of collateral due to the exposure to COVID-19 business interruption that some ILS funds hold. Aon Securities explained, “Investor appetite for collateralized reinsurance can be more sensitive to loss activity than catastrophe bonds, due to the propensity for losses at lower return periods, including ancillary losses associated with the COVID-19 outbreak.”

#ART #ILS #CAT

·artemis.bm·Oct 15, 2020

Collateralized reinsurance to contract further, liquid ILS strategies to prosper: Aon

Quarterly de-risking market update Q4-2020

Willis Towers Watson reports on U.K. pension scheme de-risking market activity and recent market developments during the first three quarters of 2020. They expect a total of £25bn of bulk annuities and £25bn of longevity transactions to close before the year-end, of which they will be the lead adviser on £30bn. Looking forwards to 2021, the bulk annuity and longevity swaps are expected be busy again.

#ART #Longevity #Pensions

·willistowerswatson.com·Oct 16, 2020

Quarterly de-risking market update Q4-2020

Fidelis may increase second Herbie Re cat bond to as much as $300m

The second catastrophe bond from specialty insurance and reinsurance company Fidelis Insurance Holdings Limited may increase in size before close, as its target for the Herbie Re Ltd. (Series 2020-2) issuance has risen to as much as $300 million. Fidelis returned to the catastrophe bond market earlier this month for its second transaction, looking to secure a $175 million additional slice of capital markets backed reinsurance coverage for its program from insurance-linked securities (ILS) investors.

#ART #CAT #ILS

·artemis.bm·Oct 17, 2020

Fidelis may increase second Herbie Re cat bond to as much as $300m

Private cat bond platform Eclipse Re issues $20m deal, its fifth of 2020

Private catastrophe bond transformer and transaction platform Eclipse Re Ltd. has completed its fifth listed insurance-linked securities (ILS) issuance of 2020, with a nearly $20 million Eclipse Re Ltd. (Series 2020-06A) deal that has been privately placed with qualified investors. The Horseshoe managed private syndicated collateralised reinsurance note and private cat bond platform Eclipse Re has now played host to almost $107 million of privately issued and placed catastrophe bond arrangements so far in 2020.

#ART #CAT #ILS

·artemis.bm·Oct 20, 2020

Private cat bond platform Eclipse Re issues $20m deal, its fifth of 2020

Ibstock Pension Scheme completes £340m buy-in

Ibstock has completed a £340m buy-in transaction with Just Group representing 50 per cent of total liabilities of its defined benefit pension scheme. The bulk annuity transaction between the U.K. supplier of bricks and concrete products and the insurer will cover over 1,800 pensioners, representing a significant step in the company’s continuing strategy of derisking its pensions exposure. This was Just Group's largest single deal to date and marks its 200th transaction since it entered the de-risking market in 2012.

#ART #Longevity #Pensions

·pensions-expert.com·Oct 21, 2020

Ibstock Pension Scheme completes £340m buy-in

Punter Southall revives multi-employer concept in consolidator

Stoneport, a consolidation vehicle for U.K. defined benefit (DB) schemes with fewer than 1,000 members, was launched with the goal of targeting running cost, investment management and end-game efficiencies, as well as improving governance standards for these schemes. In its initial phase, the consolidation vehicle will be set up as a DB master trust, taking on board the different schemes. Once scale is achieved — it aims for 100 pension funds by the end of 2022 — the “walls will collapse” and it will become a multi-employer scheme. The end goal is for the scheme to go to buy-out by 2045. Punter Southall, the arranger, will receive 25% of the running cost savings achieved by employers.

#ART #Longevity #Pensions

·pensions-expert.com·Oct 21, 2020

Punter Southall revives multi-employer concept in consolidator

Mexico's cat bond program set for shake-up or cancellation, as FONDEN to close

Mexico’s Fund for Natural Disasters (El Fondo de Desastres Naturales), more commonly known as FONDEN, is set to be dismantled along with more than 100 other government funded public trusts, as lawmakers in the senate voted to reform this area of public funding. Having first been the recipient of catastrophe bond protection as far back as 2006 with the CAT-Mex Ltd. transaction, Mexico’s natural disaster fund has repeatedly renewed its coverage from the capital markets through a series of World Bank supported arrangements.

#ART #ILS #CAT

·artemis.bm·Oct 22, 2020

Mexico's cat bond program set for shake-up or cancellation, as FONDEN to close

Fidelis gets $275m of reinsurance from second Herbie Re cat bond

Fidelis is now set to secure $275 million of fully collateralised property catastrophe reinsurance from its second visit to the catastrophe bond market, as the Herbie Re Ltd. (Series 2020-2) issuance was priced at attractive levels and the sponsor seemed to value price over size in the end. It was originally looking to secure a $175 million additional slice of capital markets backed reinsurance coverage for its program from insurance-linked securities (ILS) investors.

#ART #ILS #CAT

·artemis.bm·Oct 22, 2020

Fidelis gets $275m of reinsurance from second Herbie Re cat bond

Regulator unveils superfunds guidance for trustees

The (U.K.) Pensions Regulator has published new guidance for defined benefit schemes transferring into a commercial consolidation 'superfund', placing the burden of proof on trustees to show that their plan is in members' best interests. It specifies that trustees of interested schemes should first demonstrate to the regulator how the move accords with three "gateway principles" before transferring into a superfund. Transfers to superfunds should only be considered if (i) the scheme cannot afford to buy out now, (ii) if a scheme has no realistic prospect of buy-out in the foreseeable future, given potential employer cash contributions and the insolvency risk of the employer, and (iii) the transfer must improve the likelihood of members receiving full benefits. https://www.thepensionsregulator.gov.uk/en/media-hub/press-releases/2020-press-releases/tpr-publishes-new-guidance-for-trustees-and-employers-considering-a-db-superfund

#ART #Longevity #Pensions #Regulation

·pensions-expert.com·Oct 22, 2020

Regulator unveils superfunds guidance for trustees

Pension Insurance Corporation buys British Steel pension scheme in £2bn deal

The Old British Steel Pension Scheme (OBSPS) has agreed to a £2bn pension insurance buy-in with Pension Insurance Corporation. The buy-in marks the end of the scheme’s Pension Protection Fund (PPF) assessment period, which began on March 29, 2018, following the restructuring of the UK operations of Indian conglomerate Tata Steel. This transaction will eventually see OBSPS members receive benefits either at the same PPF level as those currently provided or — for many members — an uplift above that amount.

#ART #Longevity #Pensions

·penews.com·Oct 22, 2020

Pension Insurance Corporation buys British Steel pension scheme in £2bn deal

Pension buyouts carry needless credit risks

It is hard to avoid the conclusion that pension schemes are being unusually trusting with their members’ hard-earned savings. Neither a bank nor a fund manager would lend on anything like these lax terms. Nor is there any compelling reason why pension trustees should do so to insure future liabilities. Scheme members might usefully ask them why they are so compliantly playing along.

#ART #Pensions #Longevity

·ft.com·Oct 25, 2020

Pension buyouts carry needless credit risks