Best of Artemis, week ending 30th October 2016

Here are the ten most popular news articles, week ending 30th October 2016, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates.

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Ten most viewed articles on Artemis.bm, week ending 30th October 2016:

1. SpaceX rocket explosion hits one ILS fund in September
   Another man-made disaster loss is set to hit the insurance-linked securities (ILS) market, with at least one ILS fund reporting an exposure to the SpaceX rocket launch failure in September, again providing evidence of the sectors expanding scope.

2. Hurricane Matthew to test collateral mechanisms: Doucette, Everest Re
   The impact of hurricane Matthew and the insurance and reinsurance industry losses the hurricane caused when it struck the Florida and Southeast U.S. coastline could “test the functioning of various collateral mechanisms,” according to John Doucette of Everest Re.

3. Additional reinsurance demand seen for January renewal – Hannover Re
   There is likely to be some incremental or additional demand for reinsurance capacity from European and German cedents at the key January 1st 2017 reinsurance renewal, according to global player Hannover Re.

4. Aon Hewitt tells pensions to delay longevity swaps
   Due to a dislocation in current pricing for longevity swaps, caused by lower rates of improvement in mortality in the UK, retirement and health advisory Aon Hewitt, a division of the global insurance and reinsurance broker, has warned pension schemes to delay any longevity transactions for the moment.

5. Verisk buys Analyze Re, to add new tools to AIR’s model offering
   Verisk Analytics, Inc. has announced the acquisition of Analyze Re, a specialist provider of software analytics tools and services for the insurance, reinsurance and insurance-linked securities (ILS) industries.

6. Cat bond market has potential to end 2016 at largest ever size
   It will take roughly $810 million of new catastrophe bond issuance in the final quarter of 2016 to see the market grow from the end of the third-quarter, while just a slightly above-average level of Q4 issuance would see the outstanding cat bond market end 2016 at its largest ever size.

7. Excess reinsurance capital can benefit society – Guy Carpenter
   As the European reinsurance industry meets in Baden-Baden, to discuss the upcoming January renewal season, the focus is not solely on pricing and some are highlighting the positive contribution that reinsurance and risk capital can make to society.

8. Watford Re profits on both underwriting & investment in Q3 2016
   Arch Capital Group’s total return reinsurance vehicle Watford Re, which has its assets managed by Highbridge Principal Strategies as a joint-venture investment-oriented, hybrid third-party capital backed reinsurer, has reported profitability on both underwriting and investment sides of the book in Q3 2016.

9. ILS funds return above average 1.03% in September 2016
   Insurance-linked securities (ILS), pure catastrophe bond and reinsurance linked investment funds have seen another strong month of performance in September 2016, as seasonal premiums helped to boost the Eurekahedge ILS Advisers Index return to an above average 1.03%.

10. Public entities use of ILS to grow as new structures emerge: WTW
    Public entities are expected to utilise an increasing volume of capital markets features and capacity, as the insurance-linked securities (ILS) space continues to innovate and expand. However, growth in this area is currently limited due to price competition, according to Mark Goode of Willis Towers Watson (WTW).

This is by no means every article published on Artemis during the last week, just the most popular, some of which were published over a week ago. There were 28 new articles published in the last week. To ensure you always stay up to date with Artemis and never miss a story subscribe to our weekly email newsletter which is delivered every Wednesday.

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Artemis’ Q3 2016 Catastrophe Bond & ILS Market Report – Weather risk returns, private deals, market growth

We’ve now published our Q3 2016 catastrophe bond & ILS market report.

This report reviews the catastrophe bond and insurance-linked securities (ILS) market at the end of the third-quarter of 2016, looking at the new risk capital issued and the composition of transactions completed during Q2 2016.

Q3 saw $1.087 billion of risk capital issued from eight transactions, making it the third most active Q3 of the last decade in terms of deal volume, and one of the busiest in the market’s history in terms of number of deals. Strong investor appetite for cat bond and ILS investment saw the outstanding market size increase from the $25.174 billion recorded at the end of Q2, to $25.449 billion.

Download your copy here.