Best of Artemis, week ending 8th June 2014

Here are the ten most popular news articles, week ending 8th June 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.

Top ten most viewed articles on Artemis.bm, week ending 8th June 2014:

1. Florida reinsurance renewals see rate reductions of 15% to 25%
   The June 1st Florida reinsurance renewals have seen the worst fears of many in the traditional market realised with rate reductions reported from 15% to as much as 25% not uncommon on property catastrophe programs renewing at the mid-year.
2. Klotzbach & Gray increase 2014 hurricane forecast slightly
   The tropical cyclone forecast team from Colorado State University, led by Klotzbach & Gray, has increased its forecast for the 2014 Atlantic tropical storm and hurricane season, citing slower than expected development of El Niño and a warmer Atlantic.
3. Nephila Capital investment generates estimated 20% ROE for KKR: Citi
   An estimate from Citi suggests that KKR & Co. L.P.’s (Kohlberg Kravis Roberts) stake in the insurance-linked securities and reinsurance-linked investment markets largest asset manager Nephila Capital, could be generating it an ROE of 20%.
4. Longevity risk transfer market to boom, experts forecast
   The longevity risk transfer market is forecast to boom in years to come, say experts, with as much as £100 billion of longevity risk transactions to come in the next two years, which could herald more involvement for the capital markets.
5. Pressure abounds at mid-year reinsurance renewals: Guy Carpenter
   Pressure on pricing, pressure on terms and conditions, pressure on reinsurers, pressure on retrocessionaires, pressure on the traditional reinsurance business model. Pressure is a key word in most commentary on the June 1 reinsurance renewals, it seems.
6. Efficient reinsurance capital forcing change, M&A inevitable: Nomura
   The evolution of the reinsurance market, as it embraces and adapts to new capital from alternative sources and insurance-linked securities (ILS), will see change forced upon the incumbent reinsurers and mergers and acquisitions (M&A) becoming inevitable.
7. TWIA’s Alamo Re cat bond exposed to a repeat of Texas hurricane Ike
   The first catastrophe bond to be sponsored by the Texas Windstorm Insurance Association (TWIA), Alamo Re Ltd. (Series 2014-1), would be exposed to a Texas hurricane as severe as 2008′s hurricane Ike according to new information on the deal.
8. Reinsurance share prices suffer as capital pressures rates: A.M. Best
   The share prices of leading publicly traded reinsurance companies, including the top four European reinsurers, have suffered during the first-quarter of 2014 as the abundant levels of traditional and alternative capital put pressure on reinsurance rates.
9. Twelve Capital issues $28m Dodeka IV private catastrophe bond
   Specialist Swiss-based insurance-linked securities (ILS) and reinsurance-linked investment manager Twelve Capital has announced the completion of a third private catastrophe bond transaction, the $28m Dodeka IV.
10. Strong capital inflow compresses ILS fund spreads in April
    The average return achieved by insurance-linked securities (ILS), reinsurance linked investment and pure catastrophe bond funds was just 0.31% in April 2014, which is below average for the month, according to the latest data from the Eurekahedge ILS Advisers Index.

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Q1 2014 Catastrophe Bond & ILS Market Report – A Record Quarter

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This report reviews the catastrophe bond and insurance-linked securities (ILS) market at the end of the first-quarter of 2014, looking at the new risk capital issued and the composition of the transactions completed during Q1 2014. Download your copy here.