November 2015/1

Fund manager Securis looks set to enter the Lloyd's market via a special purpose syndicate (SPS) sponsored by listed Lloyd's insurer Novae, Trading Risk can reveal.

Credit Suisse Asset Management (CSAM) has launched a new quota share fund that it expects will have $400mn to deploy in the January renewals.

In the process of watching New Zealand's All Blacks powering through the Rugby World Cup over the past month, I've heard a few explanations of why they're the strongest team on the field these days.

Rates for US all natural perils (ANP) industry loss warranties (ILWs) have fallen by an average 12 percent from their mid-year peak, according to data from broker BMS.

Credit Suisse Asset Management (CSAM) will seek to bring new investors into Humboldt Re in the future but its growth will depend on market conditions, the firm's head of ILS Niklaus Hilti told Trading Risk.

French electricity firm EDF is investigating a renewal of its EUR150mn Pylon II cat bond, Trading Risk understands.

Negative collateral yields on euro-denominated cat bonds, unthinkable before Europe's debt crisis, have been flagged as a possible issue for the ILS market.

Cat bond prices trailed off by 0.62 percent in the final two weeks of October, as the market faced a potential loss from Mexico's Hurricane Patricia.

The Indiana Public Retirement System has allocated $50mn mandates to both Nephila Capital and Aeolus Capital Management, a spokesperson for the fund confirmed.

Markel has subscribed for 25 million voting rights in the Catco Reinsurance Opportunities Fund, equivalent to a 6.91 percent share.

The two largest reinsurer-backed ILS managers increased their catastrophe premium base in the third quarter.

Mt Logan takes $6mn cat loss; Endurance cuts cat; Kinesis profits rise

Gibraltar hopes to offer a platform for listed exchange-traded instruments (ETIs) by late 2015 that could open up a new route for ILS fund managers to market in Europe.

Disputes over winter storm claims from northeastern US regional insurers may drive additional demand for aggregate cover in 2016, sister publication The Insurance Insider reported.

S&P downgrades MultiCat; ANV explores sale; Australia looks at ILS terror cover; US floods top $400mn; Horseshoe platform; Stone Ridge establishes fund; Besso to sell Optex; Pillar profits

Entering the primary insurance space is the logical next step for ILS managers but there are structural challenges to this expansion, according to AlphaCat portfolio manager Paschal Brooks.

The creativity of the ILS market is increasing its value to reinsurance buyers and outweighing its mono-line focus on catastrophe risk as cedants increasingly push counterparties to write multiple lines of business.

Collateralised reinsurance premiums assumed from Florida insurers ballooned from $18mn to $118mn between 2010 and 2014, according to Aon Securities head of analytics Sean McCarty.

Florida Citizens Property Insurance is preparing for a major revamp of its reinsurance buying strategy in 2017 following the success of efforts to depopulate its portfolio and reduce the state-backed carrier's exposure.

Trying to compare returns available from primary insurance business to the reinsurance market is like comparing apples to oranges.

The task force established by the London Market Group to develop the UK as a centre for ILS transactions is facing competition from other "onshore" jurisdictions seeking to rival the established "offshore" ILS locations such as Bermuda and Guernsey.

Last month Trading Risk revealed that Credit Suisse is hoping to tap into the ILS market to help insure its operational risks, such as a possible cyber attack or a rogue trader incident.

Proxy firms Institutional Shareholder Services (ISS) and Glass Lewis suggested that Towers Watson investors should vote against the firm's proposed takeover by Willis.

Investors waiting for a catastrophe event to improve rates before deploying capital into ILS may be failing to understand the fundamental value of the asset class, according to speakers at the Trading Risk New York Rendez-Vous.