Allianz-Nephila commit plus news round-up
Allianz Risk Transfer and Nephila Capital have finalized an agreement securing another three years of risk capacity for Nephila. Under the agreement, Allianz Risk Transfer will continue to assist Nephila in its natural catastrophe and weather risk strategies, providing specialized services, such as balance sheet access, non-recourse leverage and other flexibility that will continue to benefit Nephila’s investors. Nephila said the extension enhances its ability to offer its clients a portfolio of diversified and high quality investment alternatives while continuing to diversify Allianz Risk Transfer’s business lines.
Fitch Ratings has said it does not expect insured losses from the recent flooding in Jakarta, Indonesia in January to trigger widespread solvency problems or excessive financial strain on the balance sheet of non-life insurers in the country. This is mainly due to the low insurance penetration rate in the country at less than 2% of GDP and protection from reinsurance coverage. It has been suggested economic losses could reach $3.31 billion while initial estimates for insured losses are closer to $300 million.
Ironshore and Lexon Surety Group have completed the first stage of a new strategic alliance in the surety market. Lexon writes over $100 million in direct written premium annually and is the 12th largest writer of surety bonds in the US. Ironshore’s subsidiaries will provide quota share reinsurance and primary fronting facility on new and renewal business for most types of US commercial and contract surety risks. In addition, Paul Giordano, chairman of Ironshore’s Political Risk, Special Risk & Surety businesses, will become a director of Lexon.
Aon Risk Solutions has formed a Transaction Liability Practice in order to capitalize on the exponential growth in the transaction liability insurance market. While Aon has been servicing this market and placing transaction related insurance products for more than a decade, the dedicated practice will leverage existing expertise and will be complemented with additional resources. The practice will provide comprehensive transaction liability solutions to organizations such as private equity firms, organizations focused on mergers and acquisitions and clients seeking innovative solutions for contingent liability exposures.
French reinsurer SCOR has entered into a Value of In-Force (VIF) monetization transaction with BBVA Seguros, a Spanish insurance company, to reinsure a whole block of life risk insurance policies. Under the structure, SCOR Global Life Reinsurance Ireland assumes a quota share of 90% of the majority of BBVA Seguros’ single premium and regular premium business. The block transaction will generate a total gross premium volume of around €1 billion for SCOR with gross premium of approximately €120 million attributable to the 2013 financial year.