Best of Artemis, week ending 5th February 2017

Here are the ten most popular news articles, week ending 5th February 2017, 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.

Ten most viewed articles on Artemis.bm, week ending 5th February 2017:

1. ILS funds saw more frequent loss events in 2016, we review the year
   A number of insurance-linked securities (ILS) and reinsurance linked investment funds ended 2016 with some loss reserve adjustments in December, ending a year that saw a frequent number of events impact the ILS market. We take a look at some of the events that threatened ILS fund losses in 2016.

2. Time to re-examine reinsurance as a form of contingent capital: JLT Re
   Given the fact that reinsurance cession rates remain near record lows, thanks to the softened state of the market, it is time for re/insurers to re-examine reinsurance as a form of contingent capital, JLT Re suggests.

3. DFID disaster risk transfer plans hint at capital markets potential
   The UK’s Department for International Development (DFID) has underlined its commitment to improving and advancing economic development in the world’s poorest and most vulnerable countries, which includes the expansion of innovative climate and catastrophe risk insurance solutions from the private sector.

4. $200bn loss may not floor London, but could herald huge ILS inflows
   A new study that looks at how the London insurance and reinsurance market would cope with an unprecedented $200 billion convergence of catastrophic losses, suggests that while it would not be fatal for London market participants, it could result in a situation where the capital market floods in.

5. Markel CATCo sees increased demand, fund deploys all capacity at 1/1
   Reinsurance and retrocession linked investment manager Markel CATCo has successfully deployed all of its flagship listed fund’s capacity at January 1st 2017 after it saw an increased demand for products offered by its Markel CATCo Re Ltd. reinsurer.

6. Interest rate rise won’t reduce allocation to ILS market: Morgan Stanley
   After the U.S. Federal Reserve hiked interest rates in December of 2016 analysts at Morgan Stanley have said that the move wouldn’t result in a reduction in the allocation of capital to the alternative reinsurance market, as investors favour the sector’s diversification over its returns.

7. Hannover Re increases sidecar use at 1/1, secures additional retro cover
   At the key January 1^st 2017 reinsurance renewals Hannover Re increased its use of third-party retrocession capacity via its K-Cessions sidecar vehicle, purchased additional catastrophe retrocession protection, and also reported growth in its structured reinsurance business as demand spiked.

8. Strategic capital activities at AXIS, including Harrington Re, pay off
   AXIS Capital has reported an increase in fee income earned through its strategic capital partners activity, which includes its alternative reinsurance capital strategy and the total-return reinsurer Harrington Re.

9. Aon’s White Rock vehicle readies private ILS program in Bermuda
   Aon Insurance Managers appears to be readying a new private catastrophe bond and private ILS vehicle in Bermuda, with the listing of an ILS program through its White Rock segregated account transformer vehicle.

10. Expect to see more innovative ILS structures in 2017: BNY Mellon
    Investment management and investments services banking group BNY Mellon recently explored the prospects for global reinsurers in 2017, and the impact market dynamics could have on the insurance-linked securities (ILS) space in the coming months.

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 25 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’ Q4 2016 Catastrophe Bond & ILS Market Report – Market reaches new heights

We’ve now published our Q4 2016 catastrophe bond & ILS market report.

This report reviews the catastrophe bond and insurance-linked securities (ILS) market at the end of the fourth-quarter of 2016, looking at the new risk capital issued and the composition of transactions completed during Q4 2016.

Q4 saw $2.13 billion of risk capital issued from six transactions, exceeding the ten-year average for the quarter by approximately $337 million. Strong investor and sponsor appetite throughout 2016 helped the market end the year at a new record size, of $26.82 billion.

Download your copy here.