December 2011/1

Investment bank UBS has closed its New York cat bond desk, Trading Risk understands.

Major cat fund manager Clariden Leu has re-opened its flagship Cat Bond Fund to new capital inflows, seven months after closing its doors in May last year in the face of weak ILS issuance.

Swiss-based alternative investor Twelve Capital has expanded its partnership with Bank Sarasin to sell ILS.

Kevin Callahan, convergence market rainmaker and founder of Aon Capital Markets has joined the judging panel for the Trading Risk Awards 2012.

The Mariah Re 2010-1 tornado bond has paid out the full $100mn face value to sponsor American Family Mutual Insurance, according to a statement from Standard & Poor's.

Hedge fund-backed reinsurer Third Point Re won its targeted A- financial strength rating from rating agency AM Best and was underwriting risks incepting at 1 January 2012.

This year will just fall short of overtaking 2005 as the most expensive year ever for the insurance industry, according to estimates from Swiss Re.

Nephila adds another $20mn to CEA line; Catco funds near $900mn

The best and worst years over the past decade for the ILS market provided the greatest test of fund managers' mettle, according to data compiled by advisory firm bfinance.

Broker-dealer Swiss Re Capital Markets traded $800mn of cat bonds in 2011, proving liquidity during live natural catastrophe events.

2011 has been another stop-start year for the cat bond market as it navigated several major obstacles but sales are now accelerating strongly into 2012.

Traders at Goldman Sachs and Swiss Re are the only broker-dealers authorised to trade cat bonds for their own account, according to a Trading Risk survey.