Best of Artemis, week ending 25th December 2016

Here are the ten most popular news articles, week ending 25th December 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 25th December 2016:

1. January 2017 renewals “orderly but delayed” as ILS expands further
   The January 1st 2017 reinsurance renewals are taking longer to come to market and to close, resulting in a more delayed renewal than seen in recent years but with the market remaining orderly, according to analysts at KBW.

2. FEMA’s 2017 NFIP flood reinsurance purchase underway
   The U.S. Federal Emergency Management Agency (FEMA) has begun its procurement process for a 2017 flood reinsurance program for its National Flood Insurance Program, as it seeks to push more of the risk into private risk transfer markets.

3. XL Catlin lifts target for Galilei Re cat bonds to $1.275 billion
   XL Catlin’s trip to the capital markets with twin Galilei Re Ltd. (Series 2016-1) and Galilei Re Ltd. (Series 2017-1) catastrophe bond issues will result in the largest single cat bond of 2016 and a brisk start to 2017 for the ILS market, as the company targets an upsized $1.275 billion of capacity from them.

4. Fairfax Financial buying Allied World for $4.9bn
   Prem Watsa’s Canadian property & casualty insurance and reinsurance group Fairfax Financial Holdings Limited is set to acquire Allied World Assurance Company Holdings, AG for $4.9 billion after the pair entered into a merger agreement.

5. Liberty Mutual in $160m Limestone Re collateralised sidecar deal
   Global insurer Liberty Mutual Insurance has announced the creation of the Limestone Capital Markets platform and a first deal using the new Bermuda segregated accounts vehicle, Limestone Re Ltd., a $160 million multi-year collateralised reinsurance sidecar-like transaction.

6. J.P. Morgan sells off cat bond portfolio, Freeman to depart
   Investment banking group J.P. Morgan has sold off its entire portfolio of catastrophe bonds and other insurance-linked securities (ILS), citing its opinion of “value in the space” as the reason. Artemis understands portfolio manager Kyle Freeman is moving on from the company at the end of this year.

7. $200m Leo Re Ltd. collateralised reinsurance sidecar listed
   Leo Re Ltd., a recently registered Bermuda special purpose insurer, has listed a $200 million tranche of notes, which likely represent a new collateralised reinsurance sidecar transaction from a currently unknown sponsor.

8. $101.4m Eden Re II reinsurance sidecar notes listed for Munich Re
   Reinsurance giant Munich Re has sponsored and listed another tranche of participating notes from its Eden Re II Ltd. collateralised sidecar vehicle, with $101.4 million of Series 2017-1 Class A notes admitted to the Bermuda Stock Exchange (BSX).

9. Hannover Re in $10m LI Re 2016-2 private cat bond via Kaith Re
   German reinsurance firm Hannover Re has facilitated another private catastrophe bond (or cat bond lite) transaction, a $10 million LI Re (Series 2016-2), with the notes issued through its segregated accounts vehicle, Kaith Re Ltd. listing on the Bermuda Stock Exchange (BSX).

10. ILS capital growth triggers cycle management in reinsurance: A.M. Best
    The steady year-on-year growth of alternative capital from the capital markets and insurance-linked securities (ILS) funds has triggered cycle management in the reinsurance market, as those capable seek to navigate around the pressure it creates, according to A.M. Best.

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 18 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.