Daily Willis Review | 4th April 2018

EXIM Bank launches risk-share program with reinsurers
The U.S. Export-Import Bank (EXIM) has launched a reinsurance program with the private sector to share risk and provide an additional $1 billion in loss coverage for a “significant portion” of EXIM’s existing portfolio of large commercial aircraft financing transactions.

The program was carried out in conjunction with a group of 10 reinsurers, led by XL Catlin, Liberty Specialty Markets and Everest.

The EXIM reinsurance program is the largest public-private risk-sharing arrangement for a U.S. government credit agency.

According to the release the program was funded by the fees generated by the original commercial aircraft transactions and will not cost U.S. taxpayers additional funds.

Jeffrey Goettman, Executive Vice-President and Chief Operating Officer, said: “We are excited to announce this historic arrangement with the private sector that protects EXIM Bank and safeguards U.S. taxpayers’ interests without requiring additional funding.

“EXIM is committed to a path of financial innovation and risk-sharing with the private sector.”

PERILS reports second loss estimate for extratropical cyclone Burglind of $834.8 million
PERILS has issued a second property insured loss estimate for windstorm Burglind, also known as Eleanor, of €680 million ($834.8 million).

Windstorm Burglind affected the British Isles and European continent on January 2 and 3, 2018, with the majority of losses occurring in France, Germany and Switzerland.

PERILS, which provides industry-wide insured loss estimates, said this compares to its initial estimate of €643 million ($789 million), which was issued on February 13.

A third loss estimate will be released on July 2, six months after the event and in line with the PERILS’ loss reporting schedule.

Argenta launches SPA with Hannover Re backing
Following approval from the Lloyd’s franchise board, Argenta Holdings will establish a special purpose arrangement (SPA) in conjunction with its parent company Hannover Re, Intelligent Insurer has reported.

The SPA 6134 will be established by Argenta Syndicate Management (ASML), the managing agency subsidiary of Argenta, and will be managed alongside Syndicate 2121.

SPA 6134 will be sponsored and capitalized by Hannover Re and will be a quota share facility reinsuring business written by Syndicate 2121.

According to the report, the target gross written premium income for the SPA for 2018 is £36 million ($50 million) across various classes of business within the underwriting capability of the host syndicate.

Andrew Annandale, Chief Executive of Argenta, said: “SPA 6134 will provide ASML with greater flexibility to react to changing market conditions and allow Syndicate 2121 to take advantage of new opportunities following Argenta’s acquisition by Hannover Re and the very significant losses experienced by the market during 2017.”

Castel Specialty establishes global property facultative reinsurance solution
Castel Specialty has launched a global property facultative reinsurance offering to its portfolio, with capacity provided by syndicates at Lloyd’s.

The company has appointed Paul Witzenfeld to underwrite a book of global property facultative reinsurance business with a focus on targeting large scale risks.

Mr. Witzenfeld joins Castel Specialty from Pen Underwriting, where he most recently served as Head of North American Property.

He brings with him more than 20 years’ experience in underwriting in the Lloyd’s and London markets.

Mark Birrell, Chief Executive of Castel, said: “Paul has the underwriting experience and proven track record that our Specialty division was established to support.

“The continuing expansion of Castel Specialty is further evidence of the opportunities that are available for niche underwriters with the appetite and ability to build their own books of business.”