Trading Risk September 2017

Schroders-owned ILS manager Secquaero has won a significant $200mn+ mandate, according to sources, as a number of companies target growth in this sector.

Chaucer is working to establish a new sidecar for 2018 as other Lloyd's (re)insurers consider new third-party capital vehicles, sources said.

This is certainly not going to be a year where the reinsurance industry is twiddling its thumbs at the annual Monte Carlo Rendez-Vous.

Cat bond broker-dealers said the market had plenty of impetus left after a record-breaking first half of 2017.

The $430mn Spectrum Re cat bond issued in June this year by fronting carrier Tokio Millennium Re was ultimately for the benefit of Credit Suisse's ILS entities, sources told Trading Risk.

Hurricane Harvey had much less of an impact on the cat bond market than last year's Matthew, but its quick intensification also left less time for livecat traders to manoeuvre ahead of the event.

Shrinking hedge fund Pine River Capital Management has shut its ILS desk, joining the ranks of generalist asset managers that have retrenched from the sector, Trading Risk revealed this month.

The Canada Pension Plan Investment Board (CPPIB) will support Lloyd's insurer Ascot's plans to grow its newly launched MGA platform, Ethos Specialty Insurance Services.

Hurricane Harvey will impact reinsurer earnings but is unlikely to spur a reversal in softening pricing, analysts said.

The four leading modelling agencies - RMS, Air Worldwide, Karen Clark and CoreLogic - broadly agree wind-driven insured losses from Hurricane Harvey will fall in the low billions of dollars.

Barbican's group leader of property treaty business, Aaron Coates, has resigned and is expected to join Twelve Capital later this year, sources said.

The major continental carriers and dominant catastrophe writers are likely to be among the key reinsurers of the regional and specialist insurers exposed to Hurricane Harvey claims.