Trading Risk December 2017
Published: 07/12/2017
BTG returns to support Lutece launch
Brazilian investment bank BTG Pactual has made a return to the reinsurance market by providing capacity to Bermudian ILS start-up Lutece Re, Trading Risk can reveal
Can beta products outsmart the brokers?
Smart beta products seem to be the flavour of the month
The ILS market loss breakdown
Industry analysts have estimated that the ILS market could pick up as much as 15-25 percent of total insured claims from this year's major disaster losses, but looking at disclosures to date suggests the sector is currently assuming its share will fall at the lower end of expectations
Late retro renewal points to stand-off
Retro market sources said that capacity shortages would not be a factor in the January renewals after ILS managers reloaded lost capital, but that uncertainty over underlying reinsurance repricing was contributing to a stand-off
Reinsurer ILS platforms: what to factor into the loss com...
Some of the ILS platforms run by the major catastrophe reinsurers appear to have taken heavier losses from the third quarter disasters relative to the burden on their parent companies, but there are a variety of reasons why this has proved the case.
High cat bond issuance expected to continue into 2018
This year has set a new record for cat bond issuances, with volumes topping $10bn - and the trend is expected to continue into 2018, Trading Risk sources have said
Markel Catco’s Andrew claim highlights issue over histori...
This year marked the 25th anniversary of Hurricane Andrew, a storm that would cost reinsurers $56bn if it recurred today, according to modelling company AIR Worldwide
Brit specialty platform names president
Brit has appointed Scott Brock as president of Scion Underwriting Managers, its new specialty (re)insurance platform, which intends to write business on behalf of third party capital providers, as well as Brit and other markets.
AIR shrinks Maria loss estimate by 40%
AIR Worldwide has slashed its range of loss estimates for Hurricane Maria to $27bn-$48bn, down from an initial $40bn-$85bn range.
Validus Re launches $325mn cat bond
Validus Re is seeking to raise $325mn from its first cat bond, an annual aggregate deal called Tailwind Re, Trading Risk understands.
Jefferies says loss creep in 2018 will drive higher rates
Investment bank Jefferies said there remains a $20bn gap between (re)insurer loss estimates from Q3 catastrophe events and anticipated industry losses, as it predicted loss creep would fuel rate increases in 2018.
Cat bond market poised for further growth after 2017 issu...
This year began with a flurry of cat bond transactions while existing sponsors took advantage of the soft market and expanded their coverage, as 2017 set a new record for cat bond issuance.
New ILS launches target HIM tailwinds
The ILS sector continued to see new launches in 2017, as the fallout from hurricanes Harvey, Irma and Maria gave momentum to a number of niche start-ups.
Life market grows in 2017 following Solvency II
Solvency II continued to drive life deals in 2017 after the EU capital regime came into force last year, while the market dislocation seen in 2016 following an increase in mortality rates finally abated, sources said.
Modelling the 2017 losses: recurrence estimates vary widely
Is the combination of the Harvey, Irma and Maria (HIM) hurricanes a once-in-a-career event for reinsurance underwriters or likely to happen more often?
Investor news in brief
Twelve in Frankfurt; Credit Suisse vehicles; ILS returns...
Window ILWs in frame to respond to HIM losses
A number of ILS managers stand to benefit from so-called "window" industry loss warranty (ILW) covers, which means that their recoveries may rely on limited loss deterioration.
EU-traded cat bonds face scrutiny under Mifid II
European traders of catastrophe bonds will be required to report transactions under the updated Markets in Financial Instruments Directive (Mifid II), which comes into effect on 3 January
Canadian institutions boost reinsurance holdings
Canadian institutional investors strengthened their ties with the reinsurance sector in Q4, with CPPIB funding a Bermuda-based reinsurance platform for Ascot and CDPQ investing $400mn in Hyperion
Z/Yen to launch cyber catastrophe ILS prototype
Z/Yen has launched a cyber catastrophe ILS research project as part of its two-year programme looking at how mutual distributed ledgers, such as blockchain technology, can be used across a number of fields
Lloyd’s takes high hit from 2017 cats
A number of outsized third quarter losses at Lloyd's insurers has highlighted the London market's concentrated exposure to the 2017 hurricanes
Beazley among Lloyd’s carriers chasing ILS assets
Several new ILS vehicles are in the works for 2018, marking a resurgence of interest in managing third-party capital from Lloyd's carriers that have been late to the game in setting up such platforms
Leadenhall expands business development team
Leadenhall Capital Partners has hired Hamza Khan and Paul Haig to join its business development team.
NZ Super appoints new head of external investments
The NZ Super Fund has appointed Del Hart as head of external investments and partnerships, replacing Fiona Mackenzie.
Bray joins GC Securities
GC Securities has hired Robert Bray as assistant vice president for ILS structuring and origination in New York.
Everest extends CEO Addesso's contract
Everest Re has added another year to CEO Dominic Addesso's contract, extending it through 2019, without citing a specific reason for the move.
McConnell leaves Paraline for Hiscox
Megan McConnell will step down as active underwriter of Paraline's Lloyd's Syndicate 4242 in March. She was also involved in the syndicate's reinsurance purchasing strategy.
AGCS names Schiavone as head of ART
Allianz Global & Corporate Specialty alternative risk veteran Bill Guffey has stepped down, with Paul Schiavone named as his successor as global head of alternative risk transfer.
Guy Carp chairman Newhouse to retire
Guy Carpenter chairman and reinsurance industry heavyweight Britt Newhouse is set to retire at the end of the year, sister publication The Insurance Insider revealed.