June 2013/1

The handful of nationwide US cat renewals outside Florida that renew in the mid-year are thought to have priced down by 7-15 percent, according to sister publication The Insurance Insider.

Florida Citizens Property Insurance was a stand-out example of the alternative reinsurance market lifting its market share at the 1 June renewals, as hedge fund-backed reinsurer DE Shaw and Bermudian fund manager Nephila Capital put down significant lines of capacity on the state insurer's traditional reinsurance programme.

Reinsurance quoting activity stabilised in Florida at the 1 June renewal after much more volatile pricing conditions in 2012 and 2011.

Reinsurance buyers continued to look for greater aggregate or sideways cover at the mid-year renewals - a trend that works to the strengths of capital market reinsurers as they continue to lift their market share.

Axis Re CEO Jay Nichols has set up two new convergence market units within the space of a week, in a move long expected from the former RenaissanceRe Ventures executive.

Sidecar fees remain above the standard rate for ILS fund managers but are also coming under pressure in a softening property catastrophe market, Trading Risk understands.

Forecasters are predicting that the 2013 Atlantic hurricane season, which opened on 1 June, will see above-average activity.

PCS has left its file on Hurricane Sandy open after reconfirming its loss estimate at $18.75bn, going against its normal policy of closing off the survey process once it has produced two consecutive stable loss estimates for a disaster.

Steven Cohen's hedge fund SAC Capital could face investor withdrawals of up to $3.5bn, or more than half the $6.75bn third-party capital it manages, according to reports.

Axis founder John Charman says he wants to bring third-party capital "inside the business structure" at Bermudian (re)insurer Endurance after taking up the CEO role this month.

Don Kramer has changed tack with his start-up fund manager ILS Capital Management and will now target the niche marine sector after hiring former Ariel Re underwriter Brian Gulbransen as chief underwriter of specialty reinsurance.

Dexion Capital's closed-ended ILS fund DCG Iris has raised £9.3mn from its third share placement to reach a total size of £60.28mn.

Hiscox used its newly launched Bermudian special purpose insurer Kiskadee Re to complete several collateralised reinsurance transactions at the June renewals, Hiscox senior vice president Adam Alvarez told Trading Risk.

Scor Global Investments has raised $50mn for its Atropos ILS fund in the first third-party mandates to be awarded to the manager.

The six-year history of ILS fund manager Pentelia Capital Management is drawing to a close after former portfolio manager and final remaining staff member Mathieu Marsan left the company this month to join Lancashire.

Most cat bonds with exposure to aggregate tornado risk showed positive pricing movement between the start of May and early June after a spate of severe US storm strikes last month, according to pricing data obtained by Trading Risk.

The sustained seller's market in secondary cat bonds experienced in the first quarter has subsided after new issuance flooded into the market, but investor appetite remains strong, ILS traders have indicated.

LGT's insurance-linked strategies team have disclosed that the fund manager acted as the sole investor in a new private cat bond transaction in April.

The latest Residential Re bond from USAA was the only deal to close in the second half of May after a flurry of activity in the preceding six weeks.

Several diversifying bonds have been launched on the ILS market since the official 1 June opening of the hurricane season.

More detail has emerged on Everest's planned permanent sidecar Mt Logan Re, which will offer investors three different segments of risk

Tokio Solution Management and GC Securities launched a new platform this month designed to help smaller sponsors source capital markets reinsurance capacity and access an alternative to the Rule 144A process public cat bond.

Swiss investment manager Twelve Capital is set to take over managing Falcon Private Bank's ILS funds, bringing its total assets under management (AuM) close to $2bn.

Some ILS fund managers might make raking in new mandates look easy, but appearances can be deceptive - going into the sector is not a license to raise money.

Cat bond investors expect another flurry of deals in upcoming weeks, as sponsors respond to the rapid price falls that occurred during a frantic 10 weeks between March and May when $3bn of new issuance was placed.

Private equity heavyweight Apollo has been examining the ILS sector closely but questions whether now is the right time to move into the market, according to sources.