February 2011/1

Total ILS sales of $2bn from 10 bond issues in the fourth quarter of 2010 were the "finishing touch" on a resurgent year for the sector, Aon Benfield Securities president Paul Schultz said in a Q4 2010 report.

Bermuda-headquartered Catlin Group's Newton Re 2008-1 cat bond default is the last of four transactions that had Lehman Brothers as total return swap (TRS) counterparty to fall into technical default on payment of interest to investors.

Further details have emerged on the $200mn Signum mortality note issuance concluded last November by Goldman Sachs.

Cat bond pricing is set to fall in line with traditional rates in 2011, according to Aon Benfield's investment banking arm.

US life insurer ING has transferred $615mn of redundant reserves to Credit Suisse in a year-end transaction, taking the tally for private triple-X reserve transfers to the capital markets in 2010 to $7bn.

Swiss Re has opened the ILS scoreboard in 2011 with a new issuance of notes under its Successor X shelf facility.

The chilling presence of Lehman Brothers continues to haunt the convergence sector, as a recent $450mn lawsuit from hedge fund-backed cat reinsurer Pulsar Re highlights.

The fact that capital markets investors in the (re)insurance arena are facing natural catastrophe-related claims should not be viewed in a negative light.

Leading cat bond administrator HSBC Insurance Management (HIM) is being courted by captive manager Kane Group in an acquisition bid, Trading Risk has learned.

Investment bank JPMorgan completed an innovative longevity hedge last month, but the next health check for the pension risk transfer market will come when the bank tests investors' appetite for picking up reinsurance on the deal

While they are still reeling from losses in Chile and New Zealand last year, cat funds are now facing a disproportionate share of losses from the recent flooding and windstorms in Australia