risk transfer

While the recent earthquake in Chile is going to be hugely costly to the Chilean economy and very costly to insurers it won’t have any impact at all on catastrophe bonds as none that have been issued cover that region for quake risk.

BMW has now completed its deal (which we wrote about previously here) to offload the longevity risks of its group pension liabilities. The transaction which saw £3b of BMW’s pension liabilities transferred to Deutsche Bank is the biggest corporate longevity risk transfer on record and (as the FT reports) has doubled the size of the […]

The U.S. has been suffering some of the biggest snowfalls on record and has suffered major losses to the orange crop in Florida. The UK has suffered snow, ice and much lower temperatures than normal causing much disruption. Some areas of Asia have had significantly lower temperatures and higher snow fall than during a typical […]

So, 2009 is over and the catastrophe bond market has finished the year on a high with around $3.4B worth of issuance. Market participants were predicting $3B so must be pleased to have seen the market clear that amount and with such style as the fourth quarter resulted in so many deals being oversubscribed and […]

The tail end of 2009 is proving to be an extremely busy time for the catastrophe bond market, compare it to last year when no deals were issued beyond August and it looks like a different market completely. The latest transaction to be launched is Longpoint Re II Ltd. from Travelers Indemnity Company.

AEGON, the huge Dutch life insurance group, has announced the completion of a life insurance securitization transaction designed to free up capital to the group. The transaction will free up approximately $650m of additional regulatory capital to its U.S. operations. The transaction itself is worth $900m (the first portion of which was realised in 2008) […]

Here’s a valuable lesson for all those involved in the investment aspect of the energy sectors. Cumulus Energy Fund, managed by PCE Investors Ltd, has gained 46% this year to the end of July, beating some of its competitors by a pretty significant margin to top a report looking at returns from energy hedge funds. […]

A new report highlights te potential for major losses due to climate change. Some countries could see costs mounting to as much as 19% of their GDP by 2030 according to the report by the Economics of Climate Adaptation Working Group (a partnership between the Global Environment Facility, McKinsey & Company, Swiss Re, the Rockefeller […]

Guy Carpenter has issued it’s annual report on the state of the catastrophe reinsurance marketplace. The report entitled ‘World Catastrophe Reinsurance Market 2009’ finds that reinsurance rates have been increasing by an average of 8% through the 2009 renewals. They put this increase down largely to the financial crisis impact on reinsurers balance sheets and […]

A report published today by the International Association of Insurance Supervisors (IAIS) concludes that while the market for transferring risks to the capital markets is still relatively small when compared to traditional re/insurance it is likely to continue its trend of upward growth both in new business and eroding the market share of traditional reinsurance […]