Best of Artemis, week ending 27th January 2013

The last seven days saw one of the biggest news stories of the reinsurance-linked investment markets relatively short history as 25% of ILS investment manager Nephila Capital was sold to private equity firm KKR. As always, you can read every market news story and article on the Artemis news blog, subscribe to our weekly email newsletter update and for your convenience here are the ten most popular news articles from the last seven days on Artemis.

Top ten most viewed articles on Artemis.bm, week ending 27th January 2013:

1. Increased sophistication of ILS funds to enable more complex catastrophe bond structures
   In the latest insurance-linked securities market report from the world’s largest reinsurer Munich Re’s Risk Trading team, the increasing sophistication and reinsurance knowledge of dedicated ILS and catastrophe bond investors is referenced as a development in the market which enables the placement of more complex structures
2. PCS ups Sandy industry loss estimate to $18.75 billion, close to current reported losses
   The second estimate of hurricane Sandy insured losses has been released by Property Claims Services (PCS) this week. The first estimate of $11 billion which PCS reported in November has been increased by 70% to a new total of $18.75 billion.
3. KKR (Kohlberg Kravis Roberts) take 25% stake in Nephila Capital
   If you wanted evidence to demonstrate just how popular the insurance-linked investment universe is currently, the news that the largest investment manager in the ILS sector, Nephila Capital, is selling 24.9% of its business to private equity and buyout giant KKR & Co. L.P. (or Kohlberg Kravis Roberts), should really bring it home.
4. 27 Special Purpose Insurer registrations in Bermuda show popularity of collateralised reinsurance
   Over the course of 2012 the island of Bermuda become home to 53 new international insurers, four new insurance agencies, five new insurance managers and two insurance brokerages. Of the insurers, 27 are Special Purpose Insurers and most of these have been formed to undertake some kind of fully collateralised reinsurance cover such as cat bonds.
5. New index-based weather reinsurance product WExcess launched by Aon Benfield
   Reinsurance broker Aon Benfield has launched a new index-based weather reinsurance product for UK insurers in collaboration with reinsurer Swiss Re and weather risk management specialists CelsiusPro.
6. Bermuda leads the convergence of the reinsurance and capital markets: Fitch
   A new report on the Bermuda reinsurance market published by Fitch Ratings says that the Bermuda re/insurance market continues to lead the way as the convergence of the reinsurance market and capital markets persists.
7. LGT wins £280m mandate for UK council pension fund, to include insurance-linked securities (ILS)
   Alternative investment manager LGT Capital Partners, has won a £280m mandate to manage a portfolio of alternative investments, to include ILS, for UK local authority Hertfordshire County Council.
8. Goldman Sachs to offload reinsurance arm. Could it become collateralized?
   The market and media continues to be awash with rumours about investment bank Goldman Sachs planning to sell a majority stake in its reinsurance interests, rumours which were confirmed by Goldman Sachs itself in its Q4 earnings call.
9. Parametric catastrophe insurance pilot launched for Pacific Islands
   A new disaster insurance facility has been officially launched to provide parametric insurance cover for tropical cyclone (typhoon) and earthquake, including tsunami, risks to a group of Pacific Islands.
10. A.M. Best highlight investment-side risk of the hedge fund backed reinsurer
    In a news article published last week, rating agency A.M. Best highlight the investment-side risk that comes with the hedge fund backed reinsurer strategy which has been becoming more popular in recent years

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This is by no means all of our articles from the last week, just the most popular among our readers. To ensure you always stay up to date with Artemis subscribe to our weekly email newsletter update.

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