January 2010/1

AXA Investment Managers (IM) has launched its first public catastrophe fund, the $100mn Gaia, underlining investor interest in insurance-linked assets.

US primary insurer The Hartford has launched $100mn Foundation Re III - its third transaction in the Foundation series and the first ILS of 2010, Trading Risk can reveal.

Dutch conglomerate ING has completed an $825mn Regulation XXX life transaction, backed by a new collateral facility from Bermudian firm Karson Management.

Aon Benfield-backed catastrophe investment manager Juniperus Capital Ltd (JCL) has secured a $30-40mn equity investment from Japanese conglomerate Itochu Corporation of Tokyo - a move that will boost marketing efforts in Asia.

Risk Management Solutions (RMS) has launched its third natural catastrophe index under the Paradex banner - Paradex US Earthquake (PUE) -after it was stalled by the market disruption in 2009.

Cat bond market conditions are expected to be "very favourable" in 2010, leading to around $5bn of new issuance, according to industry experts.

A record $1.7bn ILS issuance in Q4 fuelled by 30-40 percent falls in cat bond pricing took total 2009 ILS issuance to $3.5bn in the form of 19 transactions (see table).

Three deals closed in late December with a combined capacity of $875mn -demonstrating strong investor demand for the ILS product.

Goldman Sachs Group has ceased to run its life settlement longevity index QxX due to poor take-up, Trading Risk can reveal.

Longevity specialist Centurion Fund Managers has formally launched its fourth open-ended longevity fund - and the first in the market to combine macro and micro longevity, according to the firm.

Reinsurers gave in to a controlled reduction of prices at the 1 January renewal, with prospects for any generalised upturn unlikely in 2010, according to leading reinsurance brokers' reports.

The ILS market produced a total return of 10.97 percent in 2009, driven mainly by mark-to-market gains from tightening cat bond spreads, according to Aon Benfield Securities.

The ILS team at Swiss fund manager Partners Group is leaving the firm to launch a new investment management company.

Bermudian Harbor Point has renewed its affiliated collateralised retro facility New Point III Ltd for 2010, with capacity offering aggregate limits totalling up to $100mn.

Rating agency Standard & Poor's (S&P) has affirmed its A+ credit rating on RenaissanceRe affiliate and property catastrophe reinsurer DaVinci Re, with a stable outlook.

Fitch Ratings has affirmed the ratings on three tranches of notes and loans for State Farm's 2007 $1.2bn Merna Re cat bond, as the likelihood of a loss diminishes as the transaction moves closer to maturity in June 2010.

Swiss Re has insured SFr1.7bn of longevity risks for the Royal County of Berkshire pension fund (RCBPF) in the first pure longevity risk transfer undertaken for any government body worldwide, according to the firm.

Natural catastrophe activity remained near the levels of the previous two years in 2009, though in the absence of a significant fallout from a US hurricane this season insured losses were in the region of only $20bn, according to the latest research from Aon Benfield.

Units of the World Bank have launched a Global Index Insurance Facility (GIIF) designed to enable clearly defined natural catastrophe/weather related insurance cover to be offered to the developing world.

The newly launched PERILS European windstorm industry loss index has been chosen as the trigger on two industry loss warranty (ILW) contracts.

Re)insurance management services firm Horseshoe Group is expanding into the Cayman Islands in a bid to capture the cat bond special purpose vehicle (SPV) market.

A tranche of Munich Re's $150mn Carillon Ltd US wind cat bond has become the latest of a quartet of Lehman Brothers-affected insurance-linked securitisations to default.