Best of Artemis, week ending 17th July 2016

Here are the ten most popular news articles, week ending 17th July 2016, 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 17th July 2016:

1. Retro market prices continue to soften, capacity shortage noted: Willis Re
   Non-marine retrocession rate movements at mid-year renewals maintained the softening trend witnessed during the April 1st renewal season, and with the majority of reinsurers having fully deployed their capital the sector has encountered a capacity shortage, says Willis Re.

2. Second Blue Halo Re cat bond launches, sponsored by Allianz
   A second catastrophe bond issuance from the Blue Halo Re special purpose insurer (SPI) has been launched to investors, a Blue Halo Re Ltd. (Series 2016-2) transaction, with sponsor Allianz Risk Transfer seeking another $100m or more of reinsurance coverage for U.S. named storms and earthquakes.

3. Relative value to drive catastrophe bond & liquid ILS issuance: WCMA
   Despite the second-quarter of 2016 being a little slower for issuance of catastrophe bonds and other liquid insurance-linked securities (ILS), the relative value gap over private ILS or collateralised reinsurance deals will continue to drive increased issuance, according to WCMA.

4. S&P warns on longevity of hedge fund reinsurance model
   The performance of hedge fund reinsurers diverged in the opening months of 2016 following investment market volatility. Consistently being outperformed by traditional reinsurers Standard & Poor’s (S&P) questions the longevity, and success of the hedge fund reinsurance business model.

5. London ILS fund managers see domicile options post-Brexit: Cadwalader
   Uncertainty surrounding regulation and passporting rights in the UK post-Brexit has seen some insurance-linked securities (ILS) investment managers look to migrate sections of their operations, according to International law firm Cadwalader, Wickersham & Taft LLP (Cadwalader).

6. $27bn of global insured cat losses in H1, above 30-year avg: Munich Re
   Global reinsurer Munich Re has revealed that global, total losses from catastrophe events in the first-half of 2016 amounted to $70 billion, of which $27 billion was insured. Both overall and insured losses were above the inflation-adjusted average for the last 30 years, says Munich Re.

7. Market disruption could support further ILS sector growth: Swiss Re’s Monnier
   A growing desire to increase re/insurance efficiency coupled with the rise of big data and technological advances, has the potential to greatly disrupt the market landscape, a trend that could support sector expansion, says Jean-Louis Monnier of Swiss Re Capital Markets.

8. LMG proposal seeks catastrophe bond issuance for UK foreign aid
   The London Market Group (LMG) has launched a white paper that explores the potential of using the impending UK ILS regime to develop a Foreign Aid catastrophe bond (FAB), providing a more efficient solution for insuring the vulnerable against natural disasters.

9. PCS signs up broker Beach for U.S., Canada & Turkey ILW’s
   Reinsurance broker Beach & Associates has signed up for a license to facilitate industry-loss warranty (ILW) transactions in the United States, Canada and Turkey using Property Claim Services (PCS) data as a trigger.

10. Expect rush of ILS capital post-loss, reduced payback: WCMA
    Third-party capital from insurance-linked investors can be expected to rush into the reinsurance market after the next major loss events, and while this won’t make the pricing cycle disappear altogether, it will reduce payback to reinsurers and temporary capacity shortages, according to WCMA.

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 22 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’ Q2 2016 Catastrophe Bond & ILS Market Report – A quiet quarter fails to keep up with investor demand

We’ve now published our Q2 2016 catastrophe bond & ILS market report.

This report reviews the catastrophe bond and insurance-linked securities (ILS) market at the end of the second-quarter of 2016, looking at the new risk capital issued and the composition of transactions completed during Q2 2016.

Q2 2016 issuance failed to hit $2 billion, with just $1.624 billion of new risk capital issued from 14 transactions. This is the first time since 2011 that Q2 issuance has failed to reach $2 billion.

Download your copy here.