November 2013/1

RenaissanceRe's DaVinci Re sidecar made a $65.2mn profit during the third quarter of 2013, down 12 percent from the $74.2mn reported in the same period last year.

AlphaCat Managers reported an $11.9mn underwriting profit for the third quarter, down from $27.6mn for the same period last year, due partly to the fact that the reinsurer did not renew its Florida sidecar.

Scor ceded EUR176mn of P&C claims to retro providers in the nine months to 30 September, almost 50 percent ahead of the EUR118mn transferred in the prior-year period.

Hannover Re ceded a lower proportion of its catastrophe losses to retrocessionaires in the first nine months of 2013 compared to the same period last year, but has still passed greater overall losses to its counterparties.

Lancashire expects the collateralised reinsurance market to expand from $40bn-$45bn at present to $65bn in the next 12-24 months, the company said on a third quarter earnings call.

Hiscox elbowed its way up the ranks of reinsurer ILS managers when it announced during the third quarter reporting season that it expected to deploy $200mn of third-party capital in 2014.

Aon Benfield Securities president Paul Schultz said that the alternative reinsurance market would have to "grow past" modelled risk as he predicted that $100bn of new capital would enter the market over the next five years.

AIG's chief reinsurance buyer Samir Shah has suggested that ILS sponsors could play a greater role in modelling their own cat bond transactions, but some broker-dealers expressed reservations about the idea to Trading Risk.

It is inevitable that ILS managers will ramp up their use of leverage as spreads compress, Fermat Capital co-founder John Seo said at the Trading Risk New York Rendez-Vous.

US terrorism and US and Asian flood risk are areas where the ILS market could be "first to the party" to help solve a double whammy of environmental and economic problems, RMS managing director Peter Nakada said at the Trading Risk New York Rendez-Vous.

Florida Citizens Property Insurance shook up the ILS 'club' with its debut Everglades Re cat bond as demand from institutional investors drove the deal up to a massive $750mn, Nephila co-founder Frank Majors said.

The next wave of ILS investors could emerge from a different source than the pension fund capital that has backed its development, according to speakers at the Trading Risk New York Rendez-Vous last month.