Archive for June, 2013

The latest catastrophe bond transaction sponsored by the world’s largest reinsurance company Munich Re has had its price guidance lowered while the cat bond is marketed. Queen Street VIII Re Limited is Munich Re’s eighth cat bond to use Queen Street branding and is the first to feature Australian cyclone risk as one of the […]

Stephen A. Velotti has been promoted to the role of Chief Executive Office (CEO) at Bermuda-based insurance-linked securities (ILS) and reinsurance-linked investment manager Pillar Capital Holdings Limited effective immediately. Mr. Velotti joined Pillar Capital in 2008 and until this promotion held the roles of Chief Underwriting Officer and Chief Investment Officer.

One of the factors that has been driving down catastrophe reinsurance rates, both in catastrophe bonds and recent traditional reinsurance renewals, is the lower cost associated with capital sourced from third-party investors. Reduced cost means capital can afford to be deployed for lower returns, which some believe is going to continue driving growth of alternative […]

After a six-year term as Chief Financial Officer of Florida’s Citizens Property Insurance, during which time Florida’s windstorm insurer of last resort has embraced the private risk transfer and reinsurance markets leaving it in the best financial shape in its history, Sharon Binnun is to return to the private sector.

Insurance and reinsurance group Amlin Plc’s second catastrophe bond transaction Tramline Re II Ltd. (Series 2013-1) has seen its price guidance narrow while the cat bond has been marketing. The transaction has only seen a very slight change in interest spread guidance, likely as it began marketing with a low coupon rate.

The growth of convergence reinsurance capacity, largely third-party investor backed, has seen strong growth over recent years. According to reinsurance broker Guy Carpenter, alternative reinsurance capacity has grown from just 8% of the global property catastrophe reinsurance market at the end of 2008 and looks set to reach 15% by the end of this year.

Argenta Private Capital Limited, a subsidiary of Argenta Holdings plc also the parent to Argenta Syndicate Management Limited which manages aggregate underwriting capacity of £310 million, has launched a new vehicle called VisionRe Limited to offer high-net worth and institutional investors access to the Lloyd’s insurance and reinsurance market.

The month of May saw the market for secondary positions in outstanding catastrophe bonds continue to see more liquidity, as issuance of new catastrophe bonds continued to be strong throughout the month and investors used the secondary cat bond market to rebalance portfolios allowing them to participate in the new issuance.

The primary catastrophe bond market exploded back to life with four new transactions launching in the last week, read about all of them here. As always, you can read every market news story and article here on the Artemis news blog, subscribe to our weekly email newsletter updates and for your convenience here are the […]

The size of the alternative reinsurance space, consisting of third-party backed reinsurance capacity in the form of insurance-linked securities, collateralized reinsurance, sidecars, funds and other vehicles, is becoming increasingly difficult to gauge. Right now it is growing on a weekly basis as new inflows come into the space and new third-party capital management units emerge.