August 2013/1

As ILS premiums tumbled in the first half of 2013, market commentators described the phenomenon as a "decoupling" of cat bond prices from the traditional reinsurance market.

Luxembourg-based life insurer Atlanticlux is looking to issue a value of in-force (VIF) life insurance securitisation through a $100mn insurance-linked Sukuk, or Islamic bond programme, according to Fitch

Opportunistic retro purchasing helped many (re)insurers cut back their exposure to major catastrophe events as they headed into the peak North Atlantic windstorm season.

Two new sponsors entered the cat bond market this summer after being hit by Sandy losses last year as US-focused issuance continued into late July

Two new diversifying cat bonds are expected to be snapped up by investors as specialist ILS funds seek to balance their peak portfolios of US wind risk

Reinsurers kept up the pace of progress in their capital markets divisions during the summer, as Monte Carlo marks a key make-or-break point for new vehicles before the 1 January 2014 renewals.

The volume of industry loss warranties (ILWs) placed in the first half of 2013 fell by about 15-20 percent from 2012, Aon Benfield Securities estimated

Using Bermudian segregated accounts companies (SACs) to issue private cat bonds should provide sufficient protection for investor assets, in spite of concerns over whether foreign jurisdictions would recognise the ring-fencing of assets and liabilities, according to legal experts.

Lloyd's granted Nephila's Syndicate 2357 formal permission to begin underwriting on 2 August and the fund manager is planning to cede business into the syndicate before the end of the year, Trading Risk understands

Berkshire Hathaway has returned to the life settlements market for the first time since 2006 as it completed the $60mn purchase of a portfolio with a face value of $300mn.

Summer is supposed to be a time when the reinsurance market can kick back after settling the mid-year renewals before gearing up again for the madness that is the annual Monte Carlo Rendez-Vous

Controversial proposals put forward by the Securities and Exchange Commission (SEC) to tighten regulation on money market funds (MMFs) are unlikely to have any impact on cat bonds, according to an ILS legal expert.