Archive for September, 2012

The insurance-linked securities and catastrophe bond market has been going from strength to strength in the last twelve months. We often write about the successes of the market, the growth that is being experienced and the burgeoning interest from both potential sponsors and return-seeking investors. The market seems very healthy but as well as cheerleading […]

It’s time for another of our regular fortnightly looks at the Swiss Re Cat Bond Performance Indices (our last article here) to see what they can tell us about movements in pricing and returns of outstanding catastrophe bonds and the general sentiment of the cat bond and insurance-linked securities marketplace. When we last looked it […]

Despite the severe catastrophe loss burden from 2011, which saw a number of catastrophe bonds impacted by events in Japan and the tornadoes in the U.S., the insurance-linked securities (ILS) market continued to provide investors with competitive returns when compared to other similarly rated securities. These events caused a relatively steep dip in returns immediately […]

The value of U.S. property exposed to wildfires is the subject of the latest report from modeling, data and analytics firm CoreLogic. The CoreLogic Wildfire Hazard Risk Report identifies more than 740,000 residences across 13 western U.S. states which CoreLogic says are currently at high or very high risk of wildfire damage. CoreLogic says that […]

Last week saw the annual reinsurance industry event in Monte Carlo, the Rendez-vous de Septembre, take place. Hopefully those of you who attended will have been able to keep up with the market news but if you didn’t our regular monday catch up will help. The last week was extremely busy with many companies releasing […]

The catastrophe bond most at risk of default from hurricane Isaac was the $125m Pelican Re Ltd. Pelican Re is an indemnity cat bond, providing cover to Louisiana Citizens, the property insurer of last resort for the state. The reason Pelican Re was felt to be most risky is that the indemnity trigger is set […]

The latest catastrophe bond to hit the market in 2012 has now completed successfully and been rated. The first Euro denominated cat bond of the year, Eurus III Ltd. has been issued successfully on behalf of reinsurer Hannover Re (and certain subsidiaries). The Eurus III cat bond will provide them with a source of European […]

Risk Management Solutions (RMS) have issued a new insured loss estimate for the damage caused by hurricane Isaac when it struck Louisiana and the Gulf Coast two weeks ago and also provided an update on the 2012 Atlantic hurricane season so far. RMS now estimates that insured losses from wind and storm surge impacts on […]

Bermuda based reinsurer Third Point Re, backed by a hedge fund and institutional investors, is actively raising capital for a new fund to support underwriting additional property catastrophe business. Third Point Re is backed by Daniel Loeb’s Third Point LLC hedge fund, who manage and invest the reinsurers assets in the typical hedge fund reinsurer […]

The retrocessional reinsurance market, where reinsurers look for their own reinsurance cover, is an area where collateralized capacity from reinsurance funds, sidecars and catastrophe bonds or ILS, is increasingly being put to work. The retro reinsurance market has seen some dislocation over the last year or two, thanks to the catastrophe loss burden from 2011, […]