Archive for January, 2015

Here are the ten most popular news articles, week ending 25th January 2015, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing  subscribe to the weekly Artemis email newsletter updates.

According to newspaper reports the Indian government has been considering a catastrophe bond type structure, possibly combined with a sovereign guarantee, in order to overcome a fear foreign suppliers have over its nuclear liability laws.

The topic of providing risk transfer and financing to cover pandemic risks using catastrophe bonds has reached the World Economic Forum in Davos, Switzerland this week, according to the FT, as the world comes to terms with the threat that could be posed by outbreaks causing high mortality levels.

French reinsurance firm SCOR is back in the ILS market with a proposed $150m U.S. wind, U.S. and Canada earthquake catastrophe bond Atlas IX Capital Limited (Series 2015-1), as it seeks to expand its capital markets sourced retrocession coverage.

A consortium of leading insurance and reinsurance underwriting and broking firms have launched a micro insurance consortium and micro insurance venture incubator (MVI) at the World Economic Forum event in Davos, Switzerland today.

The reinsurance market is moving beyond simply being soft into something “more structural”, as low pricing and competition from ILS and alternative capital continue to threaten the traditional reinsurance model, according to Fitch.

Catlin Group has returned to the catastrophe bond market to seek at least $200m of reinsurance cover with the issue of Galileo Re Ltd. (Series 2015-1). Interesting the deal covers a significantly higher level of risk than the firms last cat bond.

A factor that helped to drive record catastrophe bond issuance in 2014 was the structural changes which influenced a more sponsor friendly environment, according to the world’s largest reinsurance firm, Munich Re.

Investors in the insurance and reinsurance sector are set to focus on picking stocks, or accessing opportunities, which demonstrate value creation in 2015, as the market stands on the cusp of real softness and alternative capital continues to grow its share.

Health insurer Aetna’s Vitality Re VI Ltd. (Series 2015-1) ILS has achieved the target size of $200m of protection for the sponsor, while the notes have been priced with one tranche near the lowest end of guidance and the other below it.