Archive for December, 2010

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Flagstone Re puts New Zealand quake loss at up to $6 billion

Loss estimates for the New Zealand earthquake earlier this year have been rising steadily as more and more claims get filed. Only a couple of months ago the loss estimates were for an industry loss of around $3 billion, to which some said that certain industry-loss warranty (ILW) contracts would read the full article →

Longevity projections rising; pension funds need to plan for an aging population

The UK governments Department for Work and Pensions has released some data showing their latest projections for how many citizens living in the UK will make it to age 100 and how many centenarians there will be in the future. The stark figures show longevity increasing rapidly and should serve read the full article →

Montana Re was first five peril catastrophe bond to use Paradex

The recent Montana Re Ltd. cat bond issued for Flagstone Re was the first deal to feature five different perils all of which utilise a Risk Management Solutions (RMS) Paradex index trigger. The deal also features a unique parametric 'cat-in-a-circle' arrangement for Cayman Islands hurricane risk. The RMS press release read the full article →

Montana Re Ltd. catastrophe bond notes listed on the Bermuda Stock Exchange

Flagstone Re have recently completed their third catastrophe bond transaction, Montana Re Ltd. They used their Cayman Islands based SPV Montana Re to issue $210m worth of catastrophe bond notes to secure three years multi-peril cover. The notes from the deal have been listed on the Bermuda Stock Exchange. The read the full article →

Flagstone Re completes second Montana Re Ltd. catastrophe bond issuance

The latest catastrophe bond to hit the market and complete successfully in this busy Q4 of 2010 is a second issuance from Montana Re Ltd., Flagstone Re's Cayman Islands domiciled SPV. Flagstone Re first tapped the capital markets for cover using Montana Re in November 2009 for $175m of multi-peril read the full article →

Moody’s downgrades Avondale life insurance-linked securities

Earlier this month we wrote that Moody's Investor Services had placed the senior tranche of notes from the Avondale Securities SA life insurance-linked securities on review for potential downgrade due to their close link to Ireland and the Bank of Ireland (who are facing economic difficulties). Now Moody's has taken read the full article →

Vitality Re Ltd., medical benefit linked insurance-linked security closes

As the year comes to a close its great to see such activity in the insurance-linked securities and catastrophe bond market as another deal closes. And its another innovative transaction, Vitality Re Ltd.,  which is a first in the market as it transfers medical benefit claims risk to the capital read the full article →

Swiss Re completes Kortis Capital Ltd; first longevity catastrophe bond

Swiss Re has announced the completion of the first ever longevity trend catastrophe bond with the completion of Kortis Capital Ltd. The deal transfers $50m of longevity trend risk over to the capital markets for Swiss Re using the familiar structure more commonly utilised for natural catastrophe risk.The catastrophe bond read the full article →

Average annual insured disaster losses on the rise

Guy Carpenter have published an interesting graph as part of their 2010 Catastrophe Update (which you can read on their GCCapitalIdeas.com blog). The graph displays insured losses for man-made disasters and natural catastrophes by year and also shows the 10 year moving average.Given the recent quiet hurricane seasons you may read the full article →

Weather refund promotions still all the rage

At this time of year retailers all over the world are hoping it doesn't snow. If you're a UK retailer you may be a little disappointed and be glancing up at the sky nervously. Why? Well there's a chance you're running a weather refund promotion which means you could be read the full article →