Archive for December, 2013

Bermuda-based provider of property and casualty reinsurance Third Point Reinsurance Ltd., backed by hedge fund manager Dan Loeb’s Third Point LLC, has hired Nicholas Campbell as Senior Vice President, Underwriting.

The World Bank has completed a $450 million weather and oil price insurance transaction for a Uruguayan state-owned hydro-electric power company, with the risk being offset with reinsurance by Allianz, through its partnership with Nephila Capital, and Swiss Re.

The total volume of the insurance-linked listings, including catastrophe bonds, insurance-linked securities and reinsurance-linked investment funds, on the Bermuda Stock Exchange (BSX) has passed $9 billion for the first time on record.

Another large UK longevity swap transaction has completed, the third such deal in just two weeks, this time involving Legal & General entering into agreements with two of BAE Systems pension funds and passing much of the ultimate longevity risk to global reinsurance firms.

2013 catastrophe bond issuance has passed the $7 billion milestone for the first time this year with the completion of the latest catastrophe bond from insurer AIG, Tradewynd Re Ltd. (Series 2013-2), which takes the size of the cat bond market over $20 billion.

The largest institutional asset manager in the ILS and catastrophe reinsurance-linked investment sector, Nephila Capital, has today named Adam Beatty as the Active Underwriter for its Lloyd’s of London syndicate 2357, as from 1st January 2014.

Final pricing has been set for American Modern Insurance Group’s first catastrophe bond, Queen City Re Ltd. (Series 2013-1), according to our sources. Pricing declined by 20% during marketing from the mid-point of the initial guidance range.

Some more details have become available on QBE Insurance Group’s first catastrophe bond transaction, VenTerra Re Ltd. (Series 2013-1), which sees the insurer seeking reinsurance coverage from the capital markets for a number of perils including Australian risks.

The insurance-linked securities (ILS) market, of catastrophe bonds and fully-collateralized alternative reinsurance capital structures, faces a battle for access to diversifying perils as traditional reinsurers look set to compete strongly for this segment of the market.

Reinsurance firm Swiss Re has estimated the total economic losses from natural catastrophes and man-made disasters in 2013 at $130 billion, resulting in a $44 billion insured loss toll for the global insurance and reinsurance industry.