February 2016/1

A couple of cat specialists said they bought more retro in the January renewals, as Validus said it had obtained its most comprehensive programme ever.

Hannover Re and Everest Re both added about $100mn of new retro support to their sidecars in January 2016.

AlphaCat and Mt Logan Re significantly expanded their premium base throughout 2015, as their parent reinsurers continued to build out their asset management platforms.

Kaith cat bond lites extended; PRA expectations on longevity; Endurance weather deal; Cat frequency spikes; January weather losses; Xmas floods estimated at $767mn; Cycles remain: Hannover Re CEO; Tianjin losses

Allied World has dropped its capital participation in funds managed by Aeolus to $200mn for 2016, down from $350mn last year, the carrier's CFO Tom Bradley said on an earnings call.

Two insurance companies recorded losses in their weather derivative books due to mild winter conditions in Europe, according to comments made on fourth quarter result conference calls.

XL Catlin is hoping to raise $600mn for its reinsurance joint venture with alternative fund manager Oaktree, in a deal that parallels Ace's launch of a captive reinsurer with BlackRock.

Catco returns 12%; Blue Capital reports results

The Australian and New Zealand sovereign wealth funds each provided updates on their combined $300mn allocation to the ILS sector this month.

ILS fund manager LGT increased its assets under management (AuM) by $300mn to $5.5bn in February, the company told Trading Risk.

The Swiss Re Cat Bond Price Return index stabilised in early February after posting incremental softening throughout late 2015.

ILS investors traded a total of at least $20mn MultiCat Mexico 2012 class C notes at distressed levels in the three months from late October.

ILS investor demand will be tested by two unusual transactions this month.

Two cat bond deals from XL Catlin and Aetna last month highlighted divergent pricing conditions at the extreme ends of the ILS risk spectrum.

Aon Benfield estimated that the indemnity retro market would expand by 6 percent in 2016 based on growth in the January renewals.

ILS investors are expecting a less active pipeline in the second quarter, with uncertainty over whether EDF and the Turkish Catastrophe Insurance Pool will join the carriers that have decided not to renew their cat bonds.

This week the sharing economy arrived in the insurance sector, with the news that Berkshire Hathaway was among the reinsurance partners backing the imminent launch of peer-to-peer (P2P) carrier Lemonade.

The start-up from Validus Re co-founder George Reeth announced this week highlights an increased focus on the opportunities in sourcing and delivering risk rather than bearing it.

The private equity backers of Kane are close to completing a sale of the firm's insurance services and captive operations to Guernsey-based Artex Risk Solutions, sources told Trading Risk.