February 2009/1

Insurance-linked capital markets could benefit as Florida looks to alternative capital providers as part of the solution to the state catastrophe fund’s $19bn capacity shortfall.   Florida Hurr

The recent downgrade of Allstate’s Willow Re and reset of Hannover Re’s Globe Re  on the basis of collateral performance have heightened scrutiny on cat bond  structures, raising the ques

Distress in the financial markets in 2008 caused secondary trading volumes to outstrip primary issuance more than twofold as credit risk seeped into the sector and de-leveraging hedge funds were forc

The devastating Windstorm Klaus – which swept across southern France and northern Spain on 23-24 January leaving a trail of destruction – could trigger cat bonds if the losses are as high

Japanese insurer Mitsui Sumitomo Insurance USA Inc is offering weather insurance policies in the US as a “simpler” alternative to derivatives for smaller companies.   The firm will sell i

The Irish Financial Regulator (IFR) initially declined to authorise the special purpose reinsurance vehicle (SPRV) Atlas V Re Ltd in February, in a show of teeth that delayed the issuance of the firs

Swiss Re is probing all sectors of the trading risk universe in an attempt to hedge layers of the $1.55bn of exposure it assumed on the California Earthquake Authority (CEA) reinsurance programme in

Swiss Re's Jacques Aigrain stepped down as CEO as the firm's share price plumbed new depths in early February.   Investors deserted the stock following a package of measures to shore up the reinsurer

  Allstate-sponsored $250mn cat bond Willow Re paid only 91 percent of its latest interest payment, triggering ratings agencies Standard & Poor’s (S&P) and AM Best to downgrade the notes, citin

Capital markets capacity providers will emerge as winners as traditional markets seek alternative sources of capital in the face of major 2008 balance sheet losses.   With the 2008 results season now

Asset values in the collateral account of Hannover Re’s $133mn hybrid sidecar vehicle Globe Re have fallen, triggering a “new mark-to-market collateral arrangement”.   Deutsche Bank

The class B notes of Catlin-managed catastrophe collateralised debt obligation (CDO) Bay Haven have been upgraded to A by S&P as the bond nears maturity with no sign of loss.   Ratings agency S&P upg

The insurance-linked derivatives market is expected to operate on standard contract documents “within months”, allowing cat swaps, futures and options to be traded more transparently, eff

Industry Loss Warranty (ILW) rates are stabilising as retro buyers step back from the maelstrom of 2008 rate hikes and capacity shortages and the January 1 renewals.   ICAP’s Rob Turner told Tr

  Heavy fourth quarter 2008 secondary cat bond trading sent the insurance linked securities (ILS) market to only the second quarterly loss in its history, at 0.94 percent.   The quarter’s loss

Property Claim Services (PCS) has raised its estimate for onshore insured losses from Hurricane Ike by a further $900mn to $11.5bn, but the figure continues to conflict with loss projections from wit

Citadel’s CIG Re and New Castle Re’s 2007 $500mn all-debt sidecar vehicle, Emerson Re, has been terminated as the hedge fund significantly scaled back its presence in the (re)insurance ma

Oil Casualty Insurance Company’s (OIL) 2005 $405mn Avalon Re bond has been extended a further nine months, to 3 September 2009, in order to fully assess the losses to the bond.   The notes, whi

Convergence stalwart Hannover Re has successfully completed a EUR100mn embedded value life transaction, proving that the foundering life  securitisation market still has a pulse.   Hannover continued

 The Chicago Mercantile Exchange (CME) traded more than $30mn notional limit of its CHI hurricane cat futures in the first weeks of 2009, as reinsurance broker Carvill withdrew from the initiative wh

The Chicago Mercantile Exchange, the largest weather derivatives exchange, has expanded its temperature-based weather products to Australia.   The new listings, which will begin trading on 23 Februar

 IFEX traded 25 lots ($250,000) of its 1st event 2008 $10bn event-linked futures contracts in February, as traders closed out positions ahead of the revised industry loss estimates for 2008’s H