Best of Artemis, week ending 15th November 2015

Here are the ten most popular news articles, week ending 15th November 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.

Top ten most viewed articles on Artemis.bm, week ending 15th November 2015:

1. Capital markets a ‘once in a career opportunity’: AIG’s Shah
   The convergence of the capital markets with insurance and reinsurance, through the growing insurance-linked securities (ILS) market and the availability of efficient, lower-cost capital, provides a “once in a career opportunity,” according to AIG’s Samir Shah.

2. Rated reinsurance model increases efficiency without losing ILS spirit: Hilti
   Utilising a rated reinsurance model that’s backed by third-party investor capital, as seen with Credit Suisse Asset Management’s (CSAM) Humboldt Re and Kelvin Re, adds efficiency without losing the strategy and spirit of insurance-linked securities (ILS), says Niklaus Hilti.

3. Kilimanjaro Re 2015-1 cat bond more than doubles to $625m
   The Kilimanjaro Re Ltd. (Series 2015-1) catastrophe bond which is currently being marketed on behalf of reinsurance firm Everest Re looks set to more than double in size, from the $300 million it launched at, to $625 million by the close.

4. Systemic risk of risk models highlights need for underwriting expertise
   A report has highlighted the potential for risk models in the insurance and reinsurance industry to cause systemic risk, signalling a need for underwriting discipline alongside advanced and robust modelling capabilities, an area the insurance-linked securities (ILS) space is now embracing.

5. Steve Britton joins Aon in ILS management move from Horseshoe
   Steve Britton is joining Aon Captive and Insurance Management, the specialist arm of Aon plc, as Managing Director, Global ILS Management, moving on from Horseshoe Group after five years with the firm.

6. Supply demand imbalance to lead reinsurance prices down in 2016: S&P
   The continued imbalance between supply and demand for reinsurance capital will lead pricing down by up to -5% in 2016, according to Standard & Poor’s and the rating agency does not expect the imbalance to level out over the next year.

7. Catastrophe bond returns higher in 2015 relative to risk: RMS
   Industry commentary surrounding catastrophe bond rates has suggested lately that market prices have reached a floor, but research from RMS reveals that returns in the asset class relative to risk values are actually higher this year than those seen in 2014.

8. USAA back with Residential Re 2015-2 $100m multi-peril cat bond
   U.S. military mutual insurer USAA is back in the catastrophe bond market again looking to expand its use of capital markets backed reinsurance capacity, with a $100 million, single tranche issuance Residential Reinsurance 2015 Ltd. (Series 2015-2).

9. UK drafts beginnings of ILS framework, starts with transformers
   The UK government has begun to put in place the legal framework for facilitating insurance-linked securities (ILS) and collateralised reinsurance business, beginning with amendments to a financial services bill to allow a transformer vehicle to be established.

10. ILS fund-of-funds ILS Diversified Ltd. continues to outperform Index
    ILS Diversified Ltd., a fund-of-funds strategy which invests in an actively selected range of insurance and reinsurance linked investments funds, has seen impressive performance in 2015 to-date, outperforming its benchmark Index and demonstrating the benefits of the strategy.

This is by no means every article published on Artemis during the last week, just the most popular, some of which were published over a week ago. There were 25 new articles published in the last week. To ensure you always stay up to date with Artemis and never miss a story subscribe to our weekly email newsletter which is delivered every Wednesday.

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Artemis’ Q3 2015 Catastrophe Bond & ILS Market Report – A market making steady progress

We’ve now published our Q3 2015 catastrophe bond & ILS market report.

This report reviews the catastrophe bond and insurance-linked securities (ILS) market at the end of the third-quarter of 2015, looking at the $1.093 billion of new risk capital issued and the composition of the cat bond & ILS transactions completed during Q3 2015.

Download your copy here.