Archive for July, 2013

The latest insurance-linked securities (ILS) and catastrophe bond market report from Willis Capital Markets & Advisory, the investment banking and advisory arm of broker Willis, raises some very good questions that the ILS market may want to put some thought into if it is to continue its recent rapid pace of growth.

Strong and damaging earthquakes have taken place around the world in recent days, with quakes in New Zealand and China most likely to result in losses to insurance or reinsurance firms. So far, the insurance-linked securities (ILS) fund managers who have reported on these events, suggest that there will be no impact to ILS funds.

Specialist insurance and reinsurance firm Beazley has cited the strong influx of non-traditional reinsurance capital into global reinsurance markets as a potentially negative factor, which could slow growth for certain lines of business it participates in over the months to come.

Net capital inflows from capital market investors into the catastrophe bond and insurance-linked securities space, combined with reduced pricing of new catastrophe bond and ILS issues, helped the cat bond market to grow in the second-quarter of 2013, according to the latest ILS market update from reinsurer Munich Re.

Ratings agency A.M. Best recently spoke with a number of executives from Swiss Re about the growth of the catastrophe bond market in 2013. Topics covered include how inflows of third-party capital have helped pricing on cat bonds drop to become more competitive and how growing catastrophe exposures could lead to increased use of cat […]

In its latest look at the catastrophe bond and insurance-linked securities (ILS) market reinsurer Swiss Re suggests that the tight spread environment seen on cat bond issues through 2013 so far is set to continue. Tighter spreads and lower pricing has been driven by investor demand providing an attractive environment for cat bond sponsors.

Fitch Ratings has again affirmed the rating of Signum Finance Cayman Ltd. Series 2010-09, a mortality linked life insurance securitization transaction. The ratings agency cited the positive mortality experience, which remains below 100% of the actual-to-expected figure and well below the trigger level.

The outlook for insurers and reinsurers engaged in the Lloyd’s insurance market in London looks potentially gloomy, according to an analysts report from Christopher Hitchings of Keefe, Bruyette and Woods. The report states that the recent setback in reinsurance pricing could lead to gloomy market commentary on firms at Lloyd’s.

The catastrophe bond and insurance-linked security market hit a milestone recently as the size of the market hit $18 billion for the first time ever. 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 […]

There seems to be no slowing down of the momentum that the market for insurance-linked securities and catastrophe bonds has generated in recent months and issuance continues apace into July. Based on figures in our Deal Directory, including two cat bonds still marketing, 2013 ILS issuance has now passed $5 billion.