November 2010/1

Bermudian reinsurer Flagstone Re has launched its third cat bond, a multi-peril offering called Montana Re 2010, into an increasingly busy year-end pipeline, Trading Risk understands.

Chartis subsidiary National Union Fire Insurance Company of Pittsburgh (NUFI) has returned to the cat bond market with its second Lodestone offering of the year.

Cat bond sales will be significant for both peak and diversifying perils in the rest of 2010 and throughout 2011 as capacity in the market continues to rise, GC Securities says in a market update.

Reinsurance giant Swiss Re has launched the renewal of its 2008 Vega Capital collateralised risk obligation (CRO), Trading Risk understands.

IFEX ambassador and former Manulife chief Andreas Kusay has launched Aliseo Re, a new $300mn fully collateralised retro vehicle focusing on property catastrophe business.

Several multi-billion pound longevity swaps are up for tender from pension funds and should be complete within the first half of 2011, advisory firm Hymans Robertson predicts in its quarterly assessment of the pension risk market.

The sector had its teeth gritted and eyes set on the horizon for the long haul as Trading Risk took the pulse of the convergence market at its annual New York event.

Traditional market rates are heading downward as the key 1.1 renewal season approaches. Willis Capital Markets & Advisory managing director Bill Dubinsky explores the potential upside for the convergence market.

CME adds rainfall to weather offerings; Hope for OTC longevity swap trading

Bermudian specialty insurer Lancashire Holdings has sold a number of industry loss warranty (ILW) products, generating $5.4mn premium, in the aftermath of the Deepwater Horizon oil spill earlier this year.

Longevity swap structurers are not paying enough attention to the risk of swap deals outlasting their participants, says RBS managing director and head of insurance solutions Eugene Dimitriou.

Buyers of industry loss warranty (ILW) instruments are seeking more risky exposure to European wind to provide balance to the low-risk new ILS issuance that has hit the market in recent months.

Swaps on pension agenda; Hannover Life sees busy mortality pipeline ahead; Fermat's life research; Life note ratings; LLMA publishes standard documentation

Hedge fund Fortress Investment Group is in exclusive talks to buy a $6.2bn life settlements portfolio from Belgian bank KBC, according to reports.

A new Bermuda-based longevity insurance provider plans to start writing business from December after signing up several reinsurers to back its offering on a quota share basis.

Clariden Leu re-opens fund; Top Layer Re stable; Tomas triggers CCRIF payout

European catastrophe loss aggregator Perils has released loss estimates for a one-in-200-year European windstorm event to help (re)insurers prepare for the impact of Solvency II regulations.

Ratings agency Moody's has downgraded ratings on the upper tranches of Crystal Credit bonds on the back of rising aggregate loss provisions from sponsor Swiss Re.

Hedge fund Blue Mountains is understood to be involved in the launch of the $500mn Bermudian reinsurance and retro start-up Flex Re.

Outstanding European wind bonds are becoming increasingly sought after on the secondary market, sources say, after investors snapped up recent new issues.

Swiss ILS manager Solidum Partners' $4.25mn private cat bond transaction listed on the secondary market in October, offering investors a short-dated bond with the promise of capital gain at maturity.

Bonds with short periods to run until maturity are trading strongly on the secondary market as investors seek cashflow from un-exposed paper, according to brokers.

Latest cat bonds upsized significantly - marking true appetite or desperation from investors?

Catco, the aspiring collateralised catastrophe reinsurance fund, is hoping to raise sufficient capital to list on the London Stock Exchange next month.