Archive for July, 2014

With rates falling almost universally across the reinsurance market global reinsurers are left with few places to hide. But in this low rate environment the ability to adapt has become increasingly vital, according to a report from Standard & Poor’s.

This interview with Niklaus Hilti, Head of Insurance-Linked Securities Strategies at Credit Suisse Asset Management, discusses the return potential of the insurance-linked securities (ILS) asset class and how to compare this across different strategies.

We often discuss the efficiency of reinsurance capital sourced from capital markets, third-party or alternative sources, as well as its lower-cost nature which can allow it to have a competitive edge over the traditional reinsurance business model.

Swiss located insurance-linked securities (ILS) and reinsurance-linked investment management firm LGT Insurance-Linked Strategies has increased its ILS assets under management to an impressive $3.9 billion by the mid-point of 2014.

Insurance-linked securities (ILS) and reinsurance-linked investment manager Credit Suisse AG said that the total insured loss from typhoon Neoguri, that recently struck Japan and China, could reach around $1 billion.

Risk modelling firm AIR Worldwide has released version 2.0 of its Touchstone catastrophe modelling platform. The new version includes the ability to account for both catastrophe and non-catastrophe risks in a single platform, providing a single view of exposures.

Reinsurance firm Swiss Re’s latest insurance-linked securities (ILS) market update highlights the amazing start to 2014, with the highest level of catastrophe bond issuance ever recorded and a market breaking more records than Germany’s World Cup star Miroslav Klose.

The Isle of Man’s Insurance and Pensions Authority (IPA) is the latest offshore domicile which is seeking to introduce insurance special purpose vehicle (SPV) legislation, as it hopes to attract insurance-linked securities (ILS) and catastrophe bond business.

The total insurance industry loss from the wreck and salvage of the stricken cruise ship Costa Concordia looks set to get very close to the $2 billion we reported was likely over a year ago which could increase any impact on ILS or ILW instruments.

Jardine Lloyd Thompson Capital Markets (JLTCM) Inc. has closed on another catastrophe bond using its Market Re private ILS issuance platform. The $30m Market Re Ltd. (Series 2014-4) is the first cat bond on the platform to use a parametric trigger.