Archive for August, 2012

We always knew that Florida’s Citizens Property Insurance had found issuing the Everglades Re Ltd. catastrophe bond more cost effective than securing the same amount of cover in the traditional reinsurance market, but we were never able to put a figure to the actual savings. Now Citizens senior management team have discussed a figure at a […]

The Missouri Department of Insurance have put new regulation in place which will require the states mutual insurers to take on more reinsurance cover to shore up their financial stability. The regulation has been prompted as a way to preemptively stop a similar run on the mutuals finances such as what happened after the deadly […]

An independent catastrophe risk management and modelling firm has issued a report looking at the cost in insured losses that would be incurred today from some of history’s largest and most severe hurricane events. Karen Clark & Company (KCC) has published a report identifying historical US hurricanes that would likely cause $10 billion or more […]

The ninth named Atlantic tropical storm of the 2012 Atlantic Hurricane Season formed yesterday as tropical depression 9 became tropical storm Isaac. Tropical storm Isaac is currently headed straight towards the Caribbean Leeward and Windward islands, after which Isaac is forecast to head straight through the Caribbean making a course for the southern tip of […]

A report from rating agency Standard & Poor’s estimates that the U.S. crop insurance and reinsurance sector will see losses of over $5 billion from the severe drought which has been affecting much of the country in 2012. S&P says that however large the loss becomes they believe it will impact crop insurers earnings but […]

Every so often the financial press zero’s in on the catastrophe bond and insurance-linked security, usually to discuss the impact of natural events and losses. Sometimes they focus on positive aspects of the cat bond market, such as the returns that the asset class generates. Bloomberg have done just that today, publishing an article in […]

The Ontario Teachers’ Pension Plan (OTPP) is a well-known investor in the insurance-linked securities and catastrophe bond space, having a dedicated manager for that portion of their investment portfolio. The largest single-profession pension plan in Canada, the OTPP has over $117 billion in assets and is considered forward-thinking in their use of alternative, or less […]

The Chicago Mercantile Exchange (CME), the U.S. financial derivatives exchange where weather risk and hurricanes are traded, has applied to create a London-based derivatives exchange. The CME have submitted applications to the UK’s Financial Services Authority and says that pending regulatory approval as a Recognized Investment Exchange, the new exchange CME Europe Ltd will initially […]

The 2012 Atlantic tropical storm and hurricane season has so far been benign, with no real threat to the U.S. coastline from any major storms and the season thus far causing no impact to the reinsurance or catastrophe bond sector. Sometimes hurricanes can surprise us though and the path of hurricane Gordon over the last […]

Elementum Advisors, an independent investment advisor focusing on the reinsurance-linked investments space including catastrophe bonds, collateralized reinsurance, industry loss warranties and catastrophe derivatives, has announced two new hires which it says will significantly strengthen the depth of its legal, compliance and operational infrastructure. The two hires come from law firm Sidley Austin and Legal & […]