Archive for July, 2012

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Investment losses at hedge fund backed reinsurers show correlation risk

Correlation is a word that often crops up in articles here on Artemis and within the financial services industry as a whole. Correlation can be better understood as an interdependence, mutual relationship or connection between two or more things. In the risk and reinsurance markets we cover, we use the read the full article →

Vita Capital V takes Swiss Re’s Vita extreme mortality protection to over $2.25 billion

Reinsurer Swiss Re has released some comments on the completion of their latest extreme mortality securitization, Vita Capital V Ltd. As we wrote earlier today, Vita Capital V successfully completed at $275m yesterday and received its ratings. It's Swiss Re's fifth Vita securitization in the last three years and the read the full article →

Vita Capital V Ltd. completes successfully, takes 2012 insurance-linked securities issuance to $4 billion

Swiss Re's sixth issuance in their series of Vita mortality-linked catastrophe bond (or insurance-linked security) deals has completed successfully. Vita Capital V Ltd. completed and received its formal ratings yesterday after being in the market since we first wrote about the deal three weeks ago, during which time it nearly read the full article →

Munich Re reinsures £300m of longevity risk for Pension Insurance Corporation

Pension Insurance Corporation (PIC), one of the largest insurers of pension plan longevity risks and as a result a firm who assume large amounts of longevity risks themselves, has offloaded £300m of longevity risks by hedging them through a reinsurance agreement with Munich Re. The transaction see's Munich Re take read the full article →

Validus see’s mixed success with sidecars due to hedge fund investment strategies

Bermuda based reinsurance group Validus Holdings which has a number of sidecar and ventures, has announced its second quarter results and revealed mixed success in their sidecar segment. Validus launched a Bermuda Class 4 reinsurer PαCRe, Ltd. in a joint-venture with John Paulson and his Paulson & Co. hedge fund read the full article →

Best of Artemis, week ending 29th July 2012

The summer holiday season is well underway but the catastrophe bond and insurance-linked securities market remains active with a high volume of news being released. We hope these weekly updates provide a useful catch-up for those returning from holidays and give others a way to catch-up on any news they've read the full article →

On average, insurance-linked securities funds have their best month of 2012 in June

The unusual pattern of returns in the secondary catastrophe bond and insurance-linked securities market has helped ILS funds achieve their best monthly return of 2012 so far. Returns that the average ILS fund has been making have risen steadily as we moved into Q2, with first April and then May read the full article →

Outstanding catastrophe bond capacity by maturity date at 30th June 2012

After a bumper first half of the year in the catastrophe bond and insurance-linked securities market which saw over $3.6 billion of notional volume issued (see our Deal Directory for transaction details), we thought it would be interesting to look ahead and see what that means for maturities in the read the full article →

Catastrophe bond notional volume in the first-half of 2012 upsized by 56%

There are some interesting insights into the catastrophe bond market contained within a recently published newsletter from Zurich, Switzerland based insurance-linked securities investment manager Twelve Capital. In their latest Twelve Perspectives report they look back at the cat bond market in the first-half of 2012, commenting on some of the read the full article →

RMS to use long-term rate model of hurricane activity for catastrophe bond transactions

Risk modelling firm RMS have announced that as part of an initiative they are undertaking to help educate on the uncertainties inherent in catastrophe modelling they are moving to a new way of presenting hurricane risk within insurance-linked securities and catastrophe bond transactions. The change is a response to clear read the full article →