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February 2011/1

  • Almost $50mn of additional "cold-spot" industry loss warranties (ILWs) have traded in 2011 in the wake of losses in Australia and New Zealand, Trading Risk has learned.
  • US insurer Chubb's fourth East Lane Re cat bond more than doubled in size in marketing to close at $475mn, Trading Risk can reveal.
  • Veteran trader Dan Madison has left Bank of America Merrill Lynch (BAML), where he brokered a large portion of secondary cat bond trading, Trading Risk can reveal.
  • Risk Management Solutions (RMS) released a sweeping upgrade to its US Hurricane Model today (28 February) which is expected to significantly increase loss estimates for property catastrophe (re)insurers.
  • Catastrophe modelling firm AIR Worldwide has estimated that the (re)insurance industry could lose up to $8bn as a result of the second Christchurch earthquake, a loss which would roughly equal the Chilean quake that was the most costly cat last year.
  • US insurer The Hartford's latest Foundation Re cat bond closed at $135mn, paying investors 500 basis points (bps) above Treasury Money market returns.
  • Serial ILS issuer Chubb Corp is launching its fourth East Lane Re cat bond, seeking $200mn of cover against Northeastern US wind and quake losses.
  • London-based investment manager Securis Investment Partners plans to launch a new fund on the main London Stock Exchange (LSE) in March.
  • Cat bonds performed strongly in 2010, according to Swiss Re's basket of indices for the asset class, with the reinsurer hailing strong performance indicators as a sign the market has fully recovered from the financial crisis.
  • Swiss Re has opened the ILS scoreboard in 2011 in spectacular style, with its biggest Successor offering to date.
  • Further details have emerged on the latest Foundation Re issue from US insurer The Hartford, which is revisiting the cat bond market for the fourth time after raising $675mn since 2004.
  • Clariden Leu - which launched the first UCITS III-compliant cat fund in November last year - has teamed up with German distributor Fundmatrix.