Category: The Market

2014 – the convergence market, converged

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Our Christmas quiz and a look back at 2014 2014 was the year that the convergence market converged. Most large insurance companies – and many smaller ones – now use reinsurance and catastrophe bonds interchangeably. In recent...

Live Blog: ILS Convergence 2014

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This week sees the second ILS Convergence event get underway in Hamilton, Bermuda. InsuranceLinked will be covering the event in a live blog. Billionaire Roman Abramovich seemed to be going to extraordinary lengths to get a ticket...

Reinsurance returns – lower and lower

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The latest pricing data indicates that returns have slipped further for both the cat bond and reinsurance markets The third quarter has not been an active one for new reinsurance deals or cat bond issuance - both markets...

Retail investors – the third wave

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A new type of investor - the retail investor - is rapidly becoming a major force in the capitalisation of the reinsurance industry Following hurricane Katrina in 2005, over $5 billion was raised to create new reinsurance companies...

Cat bonds – not just cheap

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A more holistic analysis of cat bond transactions reveals more good news for sponsors. Risk adjusted cat bond yields have reduced significantly over the last few years. But the default probabilities calculated by cat models...

A Brief History of Cat Bond Prices

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An article that we wrote for the September 2014 issue Actuaries Magazine from the Australian Actuaries Institute. Download article The original InsuranceLinked articles A Brief History of  Cat Bond Prices Part 1 A Brief History of  Cat Bond Prices...

The silk road – ILS opportunities in China

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There has never been a cat bond in China but it is a leading candidate to be the next big thing in the ILS market. We spoke to Robert Wiest, the Head of Strategy & Operations Asia at Swiss Re. The United States dominates the...

Monte Carlo 2014 wrap up

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Every year, the reinsurance conference in Monte Carlo is accompanied by market analysis from key industry observers that sets the agenda for the next year. Here is our round up of what was said. Reinsurance broker, Guy Carpenter,...

ILS cheat sheet

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Reinsurance isn't complicated but it is full of jargon. The convergence of the reinsurance and asset management worlds has produced a strange mixture of terminology. For example, a fund can buy a cat bond and sell a reinsurance...

In the red

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Despite the lack of natural catastrophes, it has been a shaky start to the second half of the year for investors in reinsurance equity The dramatic rise of insurance linked funds has largely been driven by the success of one argument:...

The rise of the insurance linked fund

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An interactive map showing the growth of a new asset class For hundreds of years reinsurance was sold by reinsurers. In the early 2000s, a handful of specialist fund managers began to construct portfolios of catastrophe bonds on...

The next big thing

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The recent success of insurance linked funds at the expense of traditional reinsurers is just one example of how innovation is changing an old fashioned industry. New technology is having dramatic effects on many parts of the insurance market Harvard...

Sage advice

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Warren Buffett's warning that those charging inadequate premiums could wind up "getting creamed" has done little to dent ILS investors' enthusiasm. But with Munich Re's latest cat bond offering being withdrawn, are there signs that some...

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...

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...

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...

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...

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...

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...

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...

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...