Best of Artemis, week ending 29th March 2015

Here are the ten most popular news articles, week ending 29th March 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 29th March 2015:

1. Stand-alone reinsurance model may be unsustainable: Goldman Sachs
   The stand-alone reinsurance business model may be unsustainable in the future and M&A may not be the fix, as pressure from ILS and alternative capital continues to undercut the traditional reinsurer model, according to analysts from Goldman Sachs.

2. AQR Capital Management to exit reinsurance business
   Global investment-management firm AQR Capital Management told Artemis today that it has decided to exit the reinsurance business and wind-down its AQR Re unit.

3. Richard Brindle & Neil McConachie back with $2B Fidelis re/insurance hybrid
   Richard Brindle, ex-CEO of Lancashire Holdings, is set to return to re/insurance with Fidelis Insurance, employing a hybrid model looking to extract the best from both the underwriting side of the market and the hedge fund reinsurance model.

4. ‘Fundamental change’ expected in reinsurance over next 10 years
   The insurance and reinsurance market is facing a fundamental change to its business structure over the next 10 years as the capital markets continues to exert influence over the sector, according to speakers at the recent SIFMA IRLS event held in New York.

5. Florida cat fund approved to pursue up to $2.2B of risk transfer
   The Florida Cabinet and Governor Scott have just approved the CEO of the Florida Hurricane Catastrophe Fund (FHCF) to go to the private reinsurance and capital markets to establish options and pricing for up to $2.2 billion of risk transfer.

6. ACE & Blackrock’s ABR Re files offering to raise $800m to $1.3B
   ABR Reinsurance Capital Holdings Ltd., the much discussed joint venture reinsurer from insurer ACE Limited and investment bank Blackrock, has filed a securities offering which suggests that the reinsurer will look to raise between $800m and $1.3 billion of capital for launch.

7. Massachusetts Bay Transportation Authority looks to cat bonds
   The Massachusetts Bay Transportation Authority, the authority that looks after Boston’s mass transit systems, may look to the catastrophe bond market as a potential solution to hedge the risks of another winter like the one it has just experienced.

8. Reinsurer valuations too high, even at lower cost of equity: Deutsche Bank
   In a report discussing the leading European reinsurance firms, analysts from Deutsche Bank conclude that valuations are too high, having been driven up by a hunt for dependable yield from investors and a market that has tended to avoid the fundamentals.

9. Could the capital markets solve the $1B cyber insurance policy gap?
   Lately the press is awash with stories about cyber risk, cyber insurance and the threat posed to companies by hackers, malware and exploits. The need for cyber insurance and reinsurance protection is clear, but with some suggesting $1 billion policies are required would the capacity be available?

10. Safepoint’s Manatee Re 2015-1 grows to $100m, prices at top end
    Once again the market is showing its position on price, as Florida takeout insurer Safepoint Insurance Company’s first catastrophe bond Manatee Re Ltd. (Series 2015-1) prices at the top end of guidance at an increased size of $100m.

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’ Q4 2014 Catastrophe Bond & ILS Market Report – A busy finish to a record year for ILS

We’ve now published our Q4 2014 catastrophe bond & ILS market report.

This report reviews the catastrophe bond and insurance-linked securities (ILS) market at the end of the fourth-quarter of 2014, looking at the new risk capital issued and the composition of the cat bond & ILS transactions completed during Q4 2014. It also includes a brief review of the full-year 2014’s record issuance.

Download your copy here.