Category: Analysis

A brief history of cat bond prices – part two

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We take another look at how the history of cat bond prices might help to explain the current market and introduce a new interactive chart A few weeks ago we looked at how the pricing of US wind-exposed primary issues has changed...

Are we there yet?

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Does the recent increase in cat bond yields indicate that we have reached the bottom of the market? Probably not. Last week we used industry data to plot the 12 month trailing average price of US cat bonds and found that the return...

Letters | June 8 2014

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Dirk Lohmann, Chairman and Managing Partner of Sacquaero Advisors on last week’s article on long term cat bond prices Adam, With respect to your item on cat bond spreads and the last point in your article (quoted below) I would...

A brief history of cat bond prices – part one

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We analysed twelve years of data to try to  understand the causes of the big changes in the market price of catastrophe bonds Cat bond prices are at long term lows. This seems to be for at least three reasons – the broadening acceptance...

Florida 2014 – a buyer’s market

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There are still four days left to negotiate the key Florida renewal season. But this year, discussions have been distinctly one sided Bryon Ehrhart, chief executive of Aon Benfield Americas, described what has been happening during...

Perspectives – Darren Redhead, CEO of Kinesis

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A conversation with the head of Lancashire’s third party capital group The rapid structural changes in the reinsurance market have left many ‘traditional’ reinsurers struggling to adapt. At the end of 2013, Lancashire, a leading...

Moore’s Law

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The press is full of superlatives these days – biggest market, largest bond, most sponsors, lowest yield. As records seem to be falling increasing rapidly we take a look at the market trajectory Gordon Moore famously predicted...

Perspectives – Ben Fox

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The World Bank

A conversation with Dr. Ben Fox of the World Bank Group, about the Bank’s work to reduce the economic burden of natural disasters The World Bank has led efforts to use innovative financial structures to secure finance for disaster...

Industry Loss What?

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InsuranceLinked has teamed up with leading reinsurance broker, Guy Carpenter, to provide readers with historical ILW pricing data Many column inches have been devoted to discussing the current pricing levels in the market, but numbers...

Bigger data

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Cat bonds remain a largely US phenomenon despite the number of sponsors surging by 50% in the last two years This week Italian insurer, Generali, is marketing a cat bond that will include exposure in Poland, Slovakia and the Czech...

Data, Big Data

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Statistics has rebranded itself as ‘Big Data’. We've joined the bandwagon and created two new interactive charts from our data warehouse Which insurers are supplying the catastrophe bond market? The market impact of cat bonds...

Untangling twisters

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New insight into tornado risk could give investors the comfort they need In 2010, American Family’s, Mariah Re, became the first catastrophe bond to cover losses from tornadoes in the US. It was a significant development in broadening...

Big in Japan

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Three years after the Tohoku earthquake, reinsurers – traditional and alternative – have regained their appetite for Japanese risk March 11th 2011 saw an earthquake off the coast of the Tohoku region of Japan that was off the...

Known unknowns

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A new generation of catastrophe models is set to transform our understanding of the uncertainty inherent in risk analysis All catastrophe models are wrong in that they are unable to provide accurate estimates of the probability of...

Keep it private

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Private cat bonds

A peek into the world of private catastrophe bonds The catastrophe bond market reached record levels in 2013. Packaging reinsurance risk in bond format has been extremely successful in moving peak insurance risk – in particular...

In deep water

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Insurance linked securities may be part of the solution for the insolvent US federal flood programme In recent years, a series of very large losses has made flood risk a key issue for insurance companies and governments around the...

They’re back

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The surprising return of the sidecar 2014 is shaping up to be an important year for the reemergence of reinsurance sidecars as traditional reinsurers look for ways to dent the growth of the alternative reinsurance industry. In a...

What’s the damage?

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Despite the headlines, 2013 was a respite year for the reinsurance industry Recent analyses by a number of industry insiders have examined how last year, the reinsurance industry experienced one of the most benign loss years on record...

Beyond TRIPRA

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Could the ILS market help to provide an alternative to government backed terrorism insurance? More than a decade since the 9/11 terrorist attacks in the US the effects of that day still reverberate through the insurance industry. In...

Wider and wider

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The increasing breadth of the alternative reinsurance industry The alternative reinsurance industry is on the up with $7.42 billion in new securities issued in 2013 and predictions that this number could double over the next four...

All eyes on Florida

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US state's plans could create opportunities for ILS market Florida is a major beneficiary of the burgeoning insurance linked securities industry, which accounts for a hefty slice of reinsurance coverage there. So it is no surprise...

The heat is on

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Concern about global warming is fuelling greater interest in ILS A landmark report by the Intergovernmental Panel on Climate Change (IPCC) last year concluded there is unequivocal evidence that human actions are responsible for global...

Where the growth is

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Emerging markets provide risk and reward for the industry Emerging market growth has been the economic headline of the last decade and particularly apparent as the developed world has wallowed in the recessionary mire of recent years....