Market Re 2016-5, first temperature cat bond since 1999 launched

A new catastrophe bond has been launched which aims to be the first to cover temperature related weather risks since 1999, as sponsor Allianz Risk Transfer seeks $70m of coverage against European winter temperature extremes through a Market Re Ltd. (Series 2016-5) deal. For this novel catastrophe bond (or weather bond), read the full article →

Below normal heating demand season predicted this winter

It looks like the U.S. is heading for another 'warmer than average' winter in the 2012/2013 heating demand season, according to a forecast from MDA EarthSat Weather, a consulting group for weather risk and commodity weather products and services. Their seasonal winter outlook covering December 2012 to February 2013 predicts read the full article →

Warm winter highlights weather hedging winners

The warmer than average winter, which has been responsible for a number of reports of losses to weather exposed businesses and a growing interest in weather derivatives and weather risk management tools, also reveals some of the weather hedging winners who had protection in place against the unseasonably warm weather. read the full article →

Renaissance Re loses out due to warmer than average winter

Bermuda domiciled reinsurer Renaissance Re's weather and energy risk management arm, RenRe Energy Advisors Ltd., have seen a large seasonal loss over the winter due to warmer than normal conditions across the U.S. and Europe according to their recent quarterly earnings call (transcript available here). It's their second quarterly loss read the full article →

March 2012 was the warmest on record in the U.S.

Here on Artemis we often discuss the vagaries of the weather and climate and this March was certainly an unusual month worth commenting on. The U.S. saw the warmest March on record since 1950, based on natural gas weighted Heated Degree Days (GWHDDs), according to an MDA EarthSat Weather press read the full article →

Hot weather slows weather derivatives trading volumes

Environmental Finance, the monthly magazine covering the impact of environmental issues on lending, insurance, investment and trading decisions, have published an interesting news article on the weather derivatives market today. The article shows that the recent hot weather across the U.S., which resulted in the fourth warmest July on record, read the full article →

Above average temperatures to continue across U.S., good news for some weather derivatives traders

We wrote last week that some weather traders are taking advantage of the recent heat wave across the U.S. to profit from making the right choices with their weather derivative contract purchases. The high temperatures caused some weather derivative contract prices to soar on the Chicago Mercantile Exchange (CME) allowing read the full article →

Weather derivatives traders cash in on heatwave

The U.S. has been suffering from unusually high temperatures, dry weather and heatwaves across many regions in recent days and weeks. High temperatures mean weather traders are busy as companies and traders seek to hedge their weather risks using instruments such as weather derivatives. Savvy weather traders are apparently cashing in read the full article →