Archive for September, 2013

Large global reinsurers expect flat reinsurance renewals and continued growth, despite sources of alternative capital and other market developments potentially denting their share, through their diverse business mix and a continuing expansion of the demand for reinsurance around the world.

Demonstrating the value some cedents or sponsors have found in the reinsurance and catastrophe bond market in 2013 due to lower pricing, Louisiana Citizens Property Insurance Corporation, the coastal windstorm insurer of last resort, is passing on savings made to some customers.

Specialist Zurich-based insurance-linked securities and reinsurance-linked investment manager Twelve Capital has expanded its investment strategy in recent days with the launch of an insurance private debt strategy to provide small and medium insurers with a new source of regulatory capital.

With alternative capital one of the hottest topics at the Monte Carlo reinsurance Rendezvous over the last few days the subject of consolidation, mergers and acquisitions has been raised in many discussions and briefings.

Blue Capital Management, the third-party capital and reinsurance-linked fund management arm of Bermuda based reinsurer Montpelier Re, has a proposed placing of new shares in its flagship listed reinsurance-linked investment fund, the Blue Capital Global Reinsurance Fund Limited.

The major global reinsurance firms have made clear their opinions on, and reactions to, the recent flow of capital into the reinsurance market from third-party investors, with sometimes defensive statements that can leave listeners wondering whether the nervousness runs deeper than reinsurers are making out.

Risk modeller AIR Worldwide has now been involved in the issuance of over $25 billion of catastrophe bond issuance, with risk modelling services provided to over 115 cat bond transactions since the market launched back in 1996.

Zenkyoren, the Japanese National Mutual Insurance Federation of Agricultural Cooperatives, has successfully secured $300m of earthquake reinsurance protection with the completion of its latest catastrophe bond transaction, Nakama Re Ltd. (Series 2013-1).

The tropical Atlantic has warmed up and the latest and eighth storm of the 2013 Atlantic hurricane season, tropical storm Humberto, is spinning in the mid-Atlantic with winds of 60mph and forecasts believe Humberto will become a hurricane over the next 24 hours.

Global reinsurer Swiss Re said at a media and investors briefing today that it believes the recent growth in alternative capital in the reinsurance market has largely been driven by collateralized reinsurance, above inflows into other instruments such as catastrophe bonds, insurance-linked securities and industry loss warranties.