Hurricane

Capital market participants are ramping up efforts to participate in the energy insurance market through parametric deals such as Gulf of Mexico (GoM) "cat in a box" wind products, Trading Risk understands.

Tropical Storm Risk and Colorado State University meteorologists have forecast that this year's Atlantic hurricane season will see below-average storm activity.

Reinsurance buyers are turning away from private placements of collateralised reinsurance in favour of syndicated cat bond deals, Willis Capital Markets & Advisory (WCMA) said in its first quarter ILS market report.

Weather services company ImpactWeather forecast an El Nino weather pattern may develop by July or August, which could contribute to a more subdued hurricane season for 2014.

The state-backed Florida Hurricane Catastrophe Fund (FHCF) does not expect to pursue its mooted plan to buy up to $1.5bn of reinsurance for 2014, according to the fund's chief operating officer Jack Nicholson.

A number of Bermudian reinsurers have significantly reduced their net probable maximum loss (PML) figures for major catastrophe events as of 1 January 2014 after topping up on retrocession cover, analysis by sister publication The Insurance Insider's Data Room shows.

Chubb has increased the size of its East Lane Re VI cat bond by 20 percent to $270mn as pricing on the deal closed at the bottom of revised guidance ranges, according to sources.

US insurer Chubb has launched its sixth East Lane Re cat bond, seeking $225mn of cover against Northeastern US wind, storm and quake losses, Trading Risk understands.

Munich Re will raise $100mn from its new Queen St IX cat bond as pricing settled at the lower end of revised guidance, Trading Risk understands.

Pricing guidance has narrowed on Munich Re's Queen Street IX cat bond as the deal is already oversubscribed, according to sources.

The Florida Hurricane Catastrophe Fund (FHCF) said it would require lengthy commutation periods in any reinsurance cover it might seek for the 2014 hurricane season

Credit Suisse’s head of ILS, Niklaus Hilti, has said the idea that there will be significantly more reinsurance demand from the Florida market this year is “wishful thinking”.