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A clerical mistake in a reinsurance treaty does not change who owes the claim. Five US treaties filed with the SEC, 1998 to 2010, say that in almost the same words. What changes between them is the condition attached.
Three protect the party only if the error is put right quickly. Connecticut General Life and Lincoln Life and Annuity of New York, dated 1 January 1998. American Compensation and St. Paul Fire and Marine, effective 1 January 2001. Philadelphia Insurance and Axis Specialty, effective 1 July 2004. All three say rectified as soon as possible after discovery.
The 1998 one adds a price. If the error delays a transfer of funds, the party at fault pays interest on that amount at the 90-day Treasury rate until it arrives.
A 2010 coinsurance form goes a different way: correct it promptly, then adjust as soon as practicable to put both parties back where they would have been.
Virginia Surety and Tower Insurance Company of New York, effective 1 December 2004, attaches nothing at all.
The clause looks like boilerplate in all five. The proviso is where the money sits.
NB Market Note 55
ALT Dark navy card. Headline: Same clause, three different provisos. Subtitle: the errors and omissions article in five US treaties, 1998 to 2010.
Three of the nine run-off deals announced in the first three months of this year were worth less than $50m each.
PwC counts nine publicly disclosed non-life run-off transactions in that quarter, from five acquirers, carrying about $730m of gross liabilities across the five that disclosed a value. Two of those five were $250m or more.
Small legacy books do move. They move one negotiation at a time.
Two pension funds hold insurance risk. One may put up to 7 per cent of its assets in it, the other up to 1.
Pensionskasse Stadt Zurich: strategic weight 5 per cent, band 2.5 to 7, allocation rules in force since 1 January 2026. End 2025 the line stood at CHF 1,178m, 4.9 per cent.
Florida State Board of Administration: insurance target up to 1 per cent, inside a Strategic Investments bucket with a 4 per cent target.
Seven times apart at the ceiling, and the ceilings move. Luzerner Pensionskasse cut its ILS strategy from 3 to 2 per cent for 2026.
Neither ceiling reaches a $5m to $50m cedent programme.
NB Market Note 54
ALT Bar chart. Permitted maximum share of assets in insurance risk: PKZH band top 7.0 per cent, Florida SBA target 1.0 per cent.
The catastrophe bond market is expected to pass $70bn before the end of this quarter.
The figure comes from Plenum Investments, speaking at a webinar last week. Their portfolio managers also expect spreads to keep easing into 2027, with performance coming down alongside them.
A market that keeps growing while it gets cheaper is one where capital is arriving ahead of the risk on offer. Easier for the buyer of protection, harder for the investor.
Artemis, 30 October 2026.
In mid-October a Florida insurer asked the capital markets for $250m of catastrophe cover. It closed yesterday at $650m, priced below where it started.
Nature Coast Re 2026-2, named storms, indemnity, four years from 1 December.
Class A: target $150m to $350m final, guidance 6.75 to 7.50 per cent, priced at 6.25.
Class AA: target $100m to $300m final, guidance 4.00 to 4.75 per cent, priced at 3.75.
RenaissanceRe's group chief underwriting officer said on 28 October that the company's cat book is down mid-teens year to date, and that he expects rates to come down by less than that at 1 January.
Order tripled, price cleared at the bottom of the range. A cedent with $5m to place still cannot reach the instrument that is repricing.
NB Market Note 53
ALT NextBlock market note card. Cat bond pricing: SafePoint Nature Coast Re 2026-2 closed at 650 million dollars against a 250 million dollar target, both tranches priced at the bottom of guidance.
A US insurer is buying catastrophe cover that attaches $300m lower than last year's, and expects to pay less for it.
The Hartford's Foundation Re IV 2027-1 targets $280m against US named storm and earthquake, attaching at $1.3bn of losses where the 2026 deal attached at $1.6bn. Initial base expected loss 1.56 per cent against 1.18. Spread guidance 3 to 3.5 per cent against the 3.5 paid last year.
Eighth Foundation Re deal since 2004.
Artemis, 30 October 2026.
Eight US reinsurance treaties, 1996 to 2009. What forces a cedent to tell its reinsurer about a claim.
Five: a reserve at 50% of its own retention. Two: a cash figure. One: nothing at all.
All eight also list injuries reportable whatever the value.
SEC EDGAR. NB Market Note 52
ALT Dark card. Notice is triggered by your own retention. Five of eight US reinsurance treaties trigger claims notice at half the cedent retention.
A catastrophe bond ETF listed on a US exchange held $95.6m in August. It passed $150m on 28 October.
The wrapper is new. The underlying risk is the same cat bond market that institutions buy directly.
Artemis, 30 October 2026.
Five US reinsurance treaties, 1999 to 2005. The cedent keeps the premium and credits the reinsurer interest on it.
Rates written into the contracts: 7.254%, 5.50%, 4.00%, 2.50%, 3.75%.
Almost five points of spread, fixed once at placement.
SEC EDGAR. NB Market Note 51
ALT Bar chart of annual interest rates credited to the funds withheld account in five US reinsurance treaties, 1999 to 2005.
Insured natural catastrophe losses came to $91bn in the first nine months of 2026, the lowest nine-month total since 2019.
The 21st century average for the period is $88bn, the five year average $135bn. Economic losses were $204bn, so 55% of the damage carried no insurance.
Twenty-three events cost insurers more than $1bn each, against a historical average of fourteen.
Aon Global Catastrophe Recap, 29 October 2026.
Eight US reinsurance treaties filed with the SEC, 2001 to 2009. In every one the reinsurer must pay what the cedent settled.
The difference is the carve-out. Four bind the reinsurer only within the contract terms. One excludes ex gratia payments. One excludes them unless agreed in advance. One states they are unconditionally binding, compromises included.
One treaty, a 2006 professional liability quota share, needs the reinsurer's approval before the cedent settles a claim outside parameters agreed in writing.
No dollar threshold for consent in any of the eight.
NB Market Note 50
ALT Dark card. Title: the cedent settles, the carve-out decides. Eight US reinsurance treaties filed with the SEC, 2001 to 2009.
In a 2004 auto quota share the ceding commission can land anywhere between 24.0% and 46.0%. The loss ratio decides which.
Four quota share contracts filed with the SEC, read in full:
Auto 2004, provisional 28.0%, band 24.0 to 46.0, 22 points wide.
Auto 2005 addendum, band 25.0 to 37.0.
Workers comp 2008, provisional 30.0%, band 20.0 to 36.0.
Property 2012, provisional 29.0%, band 23.0 to 38.0.
The provisional rate is an advance, not a price. The price is settled years later, 45 days after each 12-month look.
NB Market Note 49
ALT Bar chart, width of the adjusted ceding commission band in four quota share treaties, 12, 15, 16 and 22 percentage points
Managing other people's reinsurance capital earned one Bermuda reinsurer $81.7m of fee income last quarter, against $101.8m a year earlier.
RenaissanceRe: management fees $48.4m against $53m, performance fees $33.3m against $48.8m. In the same quarter the group raised $152.6m of third-party capital and returned $249.3m.
Performance fees move with results, and the quarter carried almost $53m of losses attributable to those third-party interests across three large events. The management fee is the steadier half. It fell too.
RenaissanceRe Q3 2026 earnings release.
NB Market Note 48
ALT Bar chart of RenaissanceRe third party capital fee income, management fee 53.0 then 48.4, performance fee 48.8 then 33.3, millions of dollars.
A first-time catastrophe bond sponsor is in the market at EUR 50m.
VIG Re is seeking EUR 50m or more of European windstorm retrocession through Charles Bridge Re 2026 DAC in Ireland. Single tranche, weighted industry loss index, four years from 1 January 2027. Attachment at 120m index points, exhaustion at 170m. Expected loss 1.77%, price guidance 3% to 3.5%.
If it settles, that is the fifteenth new sponsor of 2026, matching last year's record.
Artemis, 28 October 2026.
11% of DACH institutional investors hold insurance-linked securities, against 9% a year earlier. 14% say they intend to.
Average allocation of those already in: 2.6% of the portfolio. Weighted across the full EUR 2.9tn in the survey, insurance risk is about 0.1% of the money.
Appetite is there. Ticket size is the bottleneck.
BAI Investor Survey 2026, 105 investors.
NB Market Note 47
ALT Bar chart, share of DACH institutional investors allocated to insurance-linked securities, 9 percent 2025, 11 percent 2026, 14 percent outlook
Catastrophe bond issuance settled at $18.92bn so far in 2026, with $1.3bn more in the pipeline. That would put the year near $20.22bn, a second year above $20bn, and still short of the $25.6bn record of 2025. Source: Artemis, 23 October 2026.
Four US reinsurance treaties, 1999 to 2003, one clause deciding when an account turns into cash. A cash call above $100,000 paid in 5 business days. 15 days from receipt of the report. 30 days from the report date. 60 days from the month close. Source: SEC exhibits.
ALT Bar chart of payment deadlines in four filed US reinsurance treaties, five to sixty days
A German cat bond is returning with its attachment point 200m euro lower and its spread cut from 5%.
VKB's King Max Re II seeks 150m euro, attaching at 700m against 900m in 2023. Expected loss 1.68% against 0.81%, guidance 3% to 3.25%.
Source: Artemis, 26 October 2026.
Three of four reinsurance treaties stop covering an open claim seven years after the contract ends.
Workers compensation covers filed with the SEC, 2002 to 2007. The fourth allows ten years plus 90 days. After that, the contracts say no liability attaches.
NB Market Note 45.
ALT Bar chart of claims reporting windows in four workers compensation reinsurance treaties filed with the SEC