October 2016/1
Published: 03/10/2016
Early manoeuvres underway in retro market
Continuing pressure for broader peril coverage is expected to be one of the themes of the upcoming retro renewals at 1 January, as a handful of buyers made early steps towards securing capacity.
Aon Securities names new London head
Aon Securities has appointed Darren Bailey to lead the company's London-based capital markets business, replenishing its UK operation after losing two staff from the unit earlier this summer.
Layering up
The reinsurance industry is dominated by talk of disruptive threats, cutting out loops in the supply chains and getting "closer to the risk".
Solvency II to boost life ILS market: funds
Solvency II could drive increased activity in the life ILS sector as insurance companies are forced to hold more capital and look at ways of de-risking that capital, according to leading life experts.
Increase in cat bond upsizing in Q3
Cat bond upsizing climbed to new heights for the past year in the third quarter as the $925mn in final quarterly volume of public 144a ILS transactions came in at almost three times the $350mn originally targeted.
Institutions drop back ILS role
Specialist investors continue to dominate the ILS landscape but hedge funds have increased their participation after buying new issuance in the past year in response to higher-yielding deals on offer, Aon Securities said in its annual review of the sector.
Rating for LCP bonds
Leadenhall Capital Partners obtained a BBB+ rating from Standard & Poor's (S&P) for two private cat bonds, in a move that will help the ILS manager demonstrate that it has a portfolio capitalised to an investment-grade level.
Florida investor Crosswinds adds reinsurance platform
Canadian asset manager Crosswinds has founded a specialty reinsurance company named Crosswinds Re to add to its involvement in the Florida (re)insurance market.
Investor news in brief
Currency boosts RBS in ILS; Stone Ridge looks to Lloyd's; ILS Advisers gain
144a market will ‘react like an accordion’
The cat bond market is likely to spring back from the shrinking that occurred in the first half of 2016, according to panellists at the Trading Risk Monte Carlo roundtable.
Cat bond spreads dip below 4%
Cat bond spreads dropped below 4 percent on a loss-free basis by the end of September, according to RMS, as rates continued to edge below yields recorded in 2015 and 2014.
Sirius explores total return model
Sirius is investigating launching a total return reinsurer start-up that would focus on the legacy market, sister publication The Insurance Insider reported.
CRC creates cat facility
Wholesale broker CRC has launched a new US nationwide all risk and catastrophe facility in partnership with managing general agency (MGA) V3 Insurance Partners.
News digest
CEA grows; Fema flood buy; Scales launch; Italian earthquake; Wildfire losses ease; Auto flood losses; Legacy deal for CPPIB
Technology to disrupt reinsurance sector
The (re)insurance industry faces disruption and disintermediation as a result of new technologies, reinsurers warned at the Monte Carlo Rendez-Vous last month
Sciemus targets cyber ILS
Parametric solutions could offer a way for the ILS market to expand into cyber risk, according to Rick Welsh, CEO at Lloyd's managing general agency (MGA) Sciemus
Modellers rethink California quake correlation risk
Recent research has overturned the traditional assumption that there is no correlation between earthquake risk along the northern and southern parts of the San Andreas Fault in California
The Monte Carlo rate debate
Reinsurers sought to declare that the market was nearing a pricing floor as the Monte Carlo Rendez-Vous kicked off the traditional lead-up to the January renewal season
Opening up ILS access could lower rates
Reinsurance buyers could have more success in lowering rates by opening up all layers of a programme to ILS capital, rather than just trying to push minimum cat bond rates down at the top end of programmes
Analysts pessimistic on reinsurance rate floor
Equity analysts suggested that reinsurers were being optimistic in talking up the prospect of the market finding a pricing floor in 2017, as they warned carriers might have to wait another year for flat renewals
Monte Carlo news in brief
Cat bond user base to shift; Axa wary on cat bonds
Stone Ridge funds up 4% to $4.95bn
Stone Ridge Asset Management's three reinsurance funds grew 4 percent in its last quarterly reporting period to reach $4.95bn by the end of July, up from the $4.76bn recorded at the end of April