© 2019 by Cornerstone Advisory, LLC

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REINSURANCE UPDATE

 

 

September 8, 2017

  • Current models continue to suggest that there will be significant insured loss due to Irma.

  • Investor actions after a major event significantly influence capital recovery and future gain.

  • Financial opportunities will be available as Reinsurers benefit from:

    • higher premiums​

    • more stringent underwriting

    • reduced capacity

    • less competition among Reinsurers

  • Our thoughts are with those in hurricane-affected areas.

September 5, 2017

  • Many Cornerstone Advisory clients own Reinsurance Securities through the ownership of Stoneridge Reinsurance Risk Premium Fund (SRRIX).

  • As another strong hurricane surfaces, we wanted to create a method of sharing information as we receive it from Stoneridge. 

  • Hurricane Harvey, as devastating as it was, has had only a subtle effect on fund pricing. This evening however, you will see the fund reduce in value due to the possibility of material loss from Hurricane Irma.

  • Reinsurance securities are priced using modeling and at this time those models show a possibility of insured loss. It is too early to know the ultimate path of this storm, however we will continue to post updates so that investors are informed.