January 2017/1
Published: 13/01/2017
Top 10 ILS managers pass $50bn AuM
The top 10 ILS fund managers have exceeded $50bn in assets under management (AuM) for 2017, as they posted their fastest rate of growth in the past two years in the run-up to the 1 January renewals.
Up to $8bn in cat bonds projected for 2017
ILS brokers have estimated that cat bond issuance may total up to $8bn for 2017, driven by a large volume of upcoming maturities and the advantageous pricing available to sponsors.
Buffering…
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PartnerRe sets up Mercalli retro sidecar
PartnerRe established a new retro sidecar, Mercalli Re, at the 1 January renewals, sources told Trading Risk.
QBE behind new $187mn Resilience Re club cat bond
QBE was the ultimate sponsor of the recent $187mn Resilience Re club cat bond, according to sources.
Cat bond yields drop below 4% by year-end
Average cat bond spreads finished 2016 trailing 60 to 70 basis points below yields that were available at the same point in 2015, according to data from RMS.
Gator to compound tornado ILS losses
An upcoming payout from the Gator Re cat bond is on track to make tornado losses more costly for ILS investors than the sector's hurricane claims to date.
Cat bond fund returns double in 2016
Returns from a group of cat bond funds tracked by Trading Risk almost doubled last year from their performance in 2015, as softening spreads bolstered values. Higher-risk deals over the past couple of years have also boosted returns available to investors.
JP Morgan retreat from ILS won’t impact market
JP Morgan has shut down its ILS trading desk after citing concerns over value in the sector, Trading Risk revealed late last month.
Hurricane ‘buffer zone’ cushioning US landfall
New research suggests that in periods of active Atlantic hurricane activity a "buffer zone" surrounds the southern US coastline that helps to curb landfalling storms.
Fema sets up reinsurance base
The US Federal Emergency Management Agency (Fema) said it hoped its first $1.04bn flood reinsurance purchase would lay the cornerstone for a multi-year programme.
News digest
SunTrust Bank becomes ILS trustee; Arch backs Premia; Floridian M&A; Russian reinsurer; Longevity swaps; Omers and Allied; Aeolus acquisition; Brazil parametric deal; BHSI eyes Japan
Pushback on softer retro conditions at 1/1
Retrocession and US property catastrophe rates moved closer to flattening out at the 1 January renewals.
Casualty offers bright spot in renewals
Casualty reinsurers operating in the US started to push back against historically broad soft-market terms at the January renewals, with most placements renewing flat, sister publication The Insurance Insider reported.
Alternative capital expansion slows as traditional growth...
Alternative market reinsurance capital intakes slowed in 2016, but the sector's rate of growth still outpaced the traditional market, brokers estimated in their reports on the 1 January renewals.
Sidecar returns drop to low teens
Annualised sidecar returns dropped to the low teens towards the end of 2016, as the softening market and catastrophe losses took a toll on performance.
Memphis advisory firm launches ILS fund of funds
A Memphis-based advisory firm, Gerber Taylor, has registered a new ILS fund of funds, Securities and Exchange Commission (SEC) filings show.