Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities



Counterparty risk a key securitization exposure, says S&P

9th November 2010

Standard & Poor’s has issued a report which reiterates that one of the key exposures in a securitization transaction (that includes insurance-linked securitization through catastrophe bonds) is counterparty risk. The risk of a counterparty being unable to meet its obligations within a transaction is central to S&P’s analysis of creditworthiness.

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Crystal Credit Ltd. still likely to default

7th March 2010

Standard & Poor’s has delivered its latest update on the Crystal Credit Ltd. transaction which transferred a portfolio of Swiss Re’s credit reinsurance treaty risk to the capital markets via an insurance linked securitization. Losses on those treaties have been high and the transaction has already had its ratings downgraded by S&P. They’ve been delivering […]

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Insurance-linked securities thoroughly back in favour

26th November 2009

There was a time in this market when talk of a downgrade or loss would have stimulated talk of the collapse of the catastrophe bond and the failure of the alternative risk markets to protect its investors. I’m pleased to say that the market and its observers seem to have matured enough to realise that […]

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Allianz calls for catastrophe bond standardisation

26th October 2009

In an article published on Bloomberg news today Allianz spokespersons have called for the catastrophe bond market to become more standardised and affordable. I don’t think they’ll get much argument there from anyone involved in this market. Standardisation would open the door to quicker issuance, more transparency and increase affordability by making it much easier […]

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Growth trend likely to continue in insurance securitisation markets

26th August 2009

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 […]

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Remember those ‘Bowie Bonds’?

13th January 2009

When I first became interested in alternative risk transfer and insurance linked securitization every research paper on the subjects mentioned the infamous ‘Bowie Bonds’ that rock star David Bowie issued to securitize his back catalogue receipts. Now this financial innovation, which helped to lead the way for securitization deals in the insurance sector, has been […]

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