Archive for September, 2014

For reinsurers the Monte Carlo reinsurance Rendez-vous has provided a fillip, defined as a stimulus to activity, but this is likely to be shortlived say analysts at Keefe, Bruyette & Woods, who say that the risk of disappointment looms large over the sector.

Here are the ten most popular news articles, week ending 21st September 2014, on catastrophe bonds, reinsurance capital and related risk transfer topics, from the last seven days on Artemis. To ensure you never miss a thing  subscribe to the weekly Artemis email newsletter updates.

The United Nations continues to move forwards, albeit slowly, its goal to address the issue of “loss and damages” from natural disasters and weather related climate risks, and catastrophe bonds, alongside other risk transfer tools, are set to feature.

Traditional reinsurance players still believe that they will be able to claw back losses suffered during a given treaty year by raising prices in subsequent years, despite the widely expected readiness of more new and alternative capital sitting on the markets sidelines.

It’s no surprise to see that rating agency Standard & Poor’s has now placed the $100m MultiCat Mexico Ltd. (Series 2012-1) Class C catastrophe bond notes on CreditWatch with negative implications as they sit at risk of loss due to hurricane Odile.

Tom Bolt, the Director of Performance Management at insurance and reinsurance market Lloyd’s, says that working with insurance-linked investment manager Nephila Capital has helped Lloyd’s to get comfortable with how ILS works.

The fate of the MultiCat Mexico Ltd. (Series 2012-1) catastrophe bond is not as clear-cut as it seems. We understand that investors must wait for confirmed data on hurricane Odile to be released by the National Hurricane Center (NHC) which can take some weeks.

Reinsurance firm Swiss Re has assisted with the development and launch of the first weather derivative backed microinsurance scheme which aims to protect smallholder farmers in Nigeria from the risk of adverse weather patterns.

Start-up hedge fund backed reinsurance companies are very unlikely to get an ‘A’ rating due to the constraints applied to new companies and the additional unique asset-side risk and potential for pricing risk, said Fitch Ratings.

Phoenix CRetro, a niche Bermudian collateralized retrocessional reinsurance firm, has assisted Ukrainian insurance firm BROKBUSINESS in becoming the first CEE based re/insurer with a license to post reinsurance collateral abroad.