Archive for January, 2014

Insurance-linked securities (ILS) funds enjoyed their highest November returns since 2007, according to the Eurekahedge ILS Advisers Index. Early estimates put full year 2013 performance of the ILS fund index at 7.52%.

New York based Stone Ridge Asset Management, which specialises in investments in insurance-linked securities (ILS) such as catastrophe bonds, investments in sidecars and quota shares, has grown its reinsurance-linked assets to over $1.3 billion in just over one year.

Elementum Advisors, an independent insurance-linked securities (ILS) and reinsurance-linked investment manager, has announced the promotion of two of its long-term employees to the level of Principal.

Zurich based independent provider of industry-wide European catastrophe insurance loss data and indices to reinsurers and ILS specialists, PERILS AG, has added six more European windstorms to its list of storms to investigate, taking the tally to nine so far this season.

Bermuda domiciled insurance, reinsurance and third-party reinsurance capital management group Validus Holdings has launched AlphaCat 2014 Ltd. a collateralized reinsurance and retrocession sidecar for the 2014 underwriting year.

The first insurance-linked securities (ILS) or catastrophe bond type transaction to launch in 2014 sees a $200m deal from regular sponsor health insurer Aetna with Vitality Re V Ltd. (Series 2014-1), its latest medical benefit claims ratio linked ILS deal.

The winter storm season in Europe looks set to add additional pressure to any insurers and reinsurers that are already feeling the pinch due to declining property catastrophe renewal rates, as losses from European windstorm and flooding start to mount.

Over the course of 2013 the volume of catastrophe bonds issued which utilised data from Property Claim Services (PCS) within their triggers totalled $2.8 billion, accounting for nearly 40% of risk capital issued.

The recent issuance of international specialty insurance and reinsurance company Argo Group’s latest catastrophe bond transaction, Loma Reinsurance (Bermuda) Ltd. (Series 2013-1), adds attractive stability to its financial results, according to its CEO.

Australian insurer QBE Insurance Group is ‘very happy’ with the successful completion of what is the first ever catastrophe bond to provide reinsurance cover for Australian perils on an indemnity basis, the $250m VenTerra Re Ltd. (Series 2013-1).