Archive for March, 2011

Economic loss estimates for the Japanese earthquake and tsunami have been put as high as $308 billion, but only a portion will result in insured losses for the international insurance and reinsurance industry. In a new Q&A document Moody’s say they expect the bulk of losses to flow to the Japanese government, Japanese insurers (including […]

A magnitude 6.8 earthquake which occurred yesterday in Myanmar, not far from the borders with Thailand and Laos, was felt as far as 800km away in Bangkok. Some affected areas remain cut off so the extent of the damage is hard to tell.

Standard & Poor’s is still unsure on the final outcome for the Japanese earthquake threatened catastrophe bond, Topiary Capital Ltd. The deal issued by Platinum Underwriters in 2008 is currently on CreditWatch negative, and that’s where S&P say it will stay until they receive the calculation report from Risk Management Solutions (expected on the 25th […]

We often get asked at Artemis why catastrophe bond and insurance-linked security Special Purpose Vehicles (or special purpose insurers) are generally domiciled offshore. The Cayman Islands and Bermuda are the two domiciles of choice for the cat bond market, with the Cayman Islands currently leading the way, Dublin in Ireland has also domiciled a few […]

Spectron Group Ltd., a financial instruments brokerage with a large weather derivatives operation, has announced that they are to be sold to Marex Group Ltd. a leading independent futures broker for £95m ($156m).

Munich Re has listed the notes of its recently closed $100m Queen Street II Capital Ltd. U.S. hurricane and European windstorm catastrophe bond on the Bermuda Stock Exchange. This will please Bermuda which is seeking to grow its share of the global catastrophe bond market by offering attractive listing terms to issuers.

Platinum Underwriters have issued a statement regarding their catastrophe losses experienced so far during 2011 including some commentary about their exposure to the earthquake and tsunami in Japan. As we have written previously, Platinum Underwriters have a catastrophe bond, Topiary Capital Ltd., which could be activated by the Japanese earthquake.

Insured losses from natural catastrophes are rising as the world becomes more developed and economic growth increases, particularly in developing areas of Asia, says insurer Allianz in a new report. The average annual cost of insured claims from catastrophes has risen eight-fold, from $5 billion in 1970 to $40 billion in 2010.

The Series III notes of Swiss Re’s Vita Capital VI Ltd. mortality insurance-linked security transaction which was issued in October 2010 have been placed on CreditWatch negative by Standard & Poor’s as they have exposure to increased mortality levels in Japan.

Ratings agency Moody’s has changed the outlooks on its ratings of some of Japan’s largest property & casualty (P&C) insurers to negative in the wake of the Japanese earthquake and tsunami. The negative outlook reflects the view that losses from the event will put pressure on the insurers profitability and capitalization benchmarks.