Archive for February, 2014

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Third Point Re catastrophe fund returns 11.4% to investors in 2013

Bermuda-based hedge fund backed property and casualty reinsurance firm Third Point Reinsurance Ltd., generated an 11.4% return for investors in its catastrophe investment fund in 2013, according to the firm's executives.The Third Point Reinsurance Opportunities Fund Ltd., which is managed by Third Point Reinsurance Investment Management Ltd. and underwritten through read the full article →

Capital creates competition in casualty reinsurance, where next?

The casualty reinsurance market is becoming more competitive and one of the main reasons is the flow of new capital, including third-party or alternative reinsurance capital, into property reinsurance, which is pushing reinsurers to look elsewhere for profits.The latest evidence to this effect comes from a professional liability focused insurer. read the full article →

Catastrophe bond risk premiums slid further by end of 2013

At the end of the fourth-quarter of 2013 the average risk premium of the catastrophe bond market declined once again, with non-U.S. wind exposed cat bond transactions seeing the biggest fall in premiums.On a quarterly basis we look at two of the key metrics which reflect recent trends in the read the full article →

Alleghany builds capabilities in alternative reinsurance capital & ILS

Alleghany Corporation, the insurance and reinsurance holding company, is building out its capabilities in alternative reinsurance capital and insurance-linked securities with the help of its subsidiary TransRe and its investment in an alternative asset manager.Alleghany bought Transatlantic Holdings, so including the property and casualty reinsurer TransRe, in 2012. Later that read the full article →

Traditional reinsurers challenged to compete on cost-of-capital

Traditional reinsurance companies are being challenged to compete with insurance-linked securities (ILS), catastrophe bonds and collateralized reinsurance products which have a lower cost-of-capital than them, according to GC Securities.Capital inflows into the reinsurance space from third-parties and capital market investors are still rising. This has been pushing pricing down both read the full article →

Blue Capital Global Reinsurance Fund launches third share placing

Blue Capital Management, the third-party capital and reinsurance-linked fund management arm of Bermuda based reinsurer Montpelier Re, has announced its intention to raise more capital for its listed Blue Capital Global Reinsurance Fund.In an announcement filed with the London Stock Exchange this morning, Blue Capital said that it intends to read the full article →

Insured losses from U.S. ‘Polar Vortex’ exceed $1.5 billion

Estimates of insurance industry losses caused by the U.S. winter storm known as the 'Polar Vortex', which impacted much of the country from January 5th to the 8th 2014, already exceed $1.5 billion according to Property Claim Services (PCS).The weather phenomenon known as the polar vortex, where the position of read the full article →

Third Point Re reports 129% increase in net income for year-two

Bermuda-based property and casualty reinsurance firm Third Point Reinsurance Ltd., backed by hedge fund manager Dan Loeb’s Third Point LLC, reported a 129% increase in net income for the full-year 2013.Strong investment results at Third Point Re, whose investable assets are manged by Daniel Loeb's Third Point LLC hedge fund read the full article →

Pricing reduced on Tokio Marine’s Kizuna Re II cat bond

Price guidance on the notes issued in Japanese insurance group Tokio Marine & Nichido Fire's latest catastrophe bond transaction, Kizuna Re II Ltd., has been lowered and the range tightened as the cat bond progresses to market.According to ILS market sources, the price guidance on one tranche of notes being read the full article →

Chubb’s East Lane Re VI cat bond continues unmodelled risk trend

More information has become available on U.S. primary insurance group Chubb's sixth catastrophe bond transaction, East Lane Re VI Ltd. (Series 2014-1), which continues a recent trend for inclusion of unmodelled risks cat bond transactions.Over the last year or two, new catastrophe bond transactions have increasingly included coverage for some read the full article →