Best of Artemis, week ending September 1, 2024

Here are the top ten news stories, week ending September 1, 2024, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing, subscribe to Artemis’ weekly email newsletter updates or receive our email notifications for every article we publish.

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Ten most read articles on Artemis.bm, week ending September 1, 2024:

1. Aon’s White Rock sues China Construction Bank for damages over Vesttoo fraud
   Aon’s segregated account company, White Rock Insurance (SAC) Ltd., has filed a lawsuit in New York against China Construction Bank, alleging that an “inside person” at the bank claimed that letters of credit (LOC) involved in the Vesttoo fraud were authentic. Artemis has learned that the bank is seeking at least $140 million in damages for losses suffered.
2. As real estate reinsurance levels off, any rollback of retentions is seen as unacceptable
   While much has been said about the flattening to slightly declining trend of property catastrophes in the mid-year reinsurance seasons, this is not currently seen as a significant issue by investors in the reinsurance sector. However, any reversal in where retentions and attachments sit is seen by many as unacceptable.
3. Typhoon Shanshan unlikely to jeopardize cat bonds or ILS positions
   Typhoon Shanshan hit the southern Japanese island of Kyushu yesterday and while it is one of the strongest storms in decades, the ultimate impact on reinsurance markets is expected to be minimal. Catastrophe bonds and other insurance-related securities (ILS) are expected to be largely unaffected, if at all.
4. Cat bond loss multiples unlikely to decline. Capital motivated to remain disciplined: AM Best
   According to AM Best, on average, catastrophe bond loss ratios are not expected to decline much further as reinsurance market capacity providers, including insurance-linked securities (ILS) managers and investors, remain motivated to lock in recently achieved gains.
5. Covered retrocession use growing among global reinsurers, but retro costs deter some buyers: S&P
   The use of covered retrocession limits has increased among the largest reinsurance companies as alternative capital remains an important source of retro protection. However, the cost of the cover is still prohibitive for some retro buyers, according to S&P Global Ratings.
6. Artemis London 2024: Meet over 110 organisations interested in cat bonds & ILS
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7. Japan ‘megaquake’ warning seen as support for reinsurance prices: JPM
   The recent and first-ever ‘megaquake’ warning issued by Japanese authorities has heightened perceptions of the danger. Although the warning was eventually withdrawn, it is seen by analysts at JP Morgan as a factor that could support reinsurance prices for that country.
8. BGC Group Hires Arbol’s Loguidice to Originate and Structure Weather Derivatives
   BGC Group, Inc., the global brokerage and financial technology company, has hired a new employee to its weather derivatives trading division. Leah Loguidice joins from Arbol and will focus on the origination and structuring of weather derivatives.
9. Artemis Live webinar: ILS Market Outlook 2025. Register to watch
   Artemis has partnered with Wilmington Trust to host a live webinar on Insurance-Linked Securities (ILS) on October 31, 2024. During this webinar, our expert speakers will discuss the state of the catastrophe bond market and the broader ILS market, as well as the outlook for 2025.
10. ILS market growth occurs when need for risk transfer is greatest: Pennay, Aon Securities
    According to Richard Pennay of Aon Securities, the increase in catastrophe bond issuance and the resulting growth in the insurance-linked securities (ILS) market over the past year has come at the right time for the insurance and reinsurance market and met their risk transfer needs.

These are not all the articles published on Artemis in the past week, but only the most popular among our readers in the past seven days. There were 26 new articles published in the past week.

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