ILS

Markel will provide approximately $150mn to facilitate the buyout of the retrocessional segregated accounts of the funds, as well as tail-risk cover to release $100mn of trapped collateral.

The business acts as a transformer, allowing traditional asset managers the chance to participate on collateralised (re)insurance transactions.

CEO Juan Andrade laid out the new targets in an investor day presentation in which he said the carrier will become a “digital first” (re)insurer.

The executive had previously been the head of third-party capital at Axis.

Reinsurance recoveries and subrogation payouts helped to minimize retained cat losses to $466mn, post-tax.

The executive says the carrier made strides last year in its underwriting and is well positioned for growth.

Palomar expanded its underwriting footprint in 2020 as it entered the specialty lines market.

The insurer will take a pre-tax net hit of $567mn from the winter loss, implying roughly $700mn of reinsurance recoveries before the impact of reinstatement premiums.

The hedge fund reinsurer reports an underwriting loss of $1.1mn for the quarter, a fraction of the typhoon-driven deficit of a year earlier.

The broker says the ILS alliance will "meaningfully increase" its capacity in three segments.

The modelling firm said its study aimed to help insurers “plan for the worst and hope for the best”.

The merged entity will also look to focus on higher margin lines and invest in InsurTech.