Hurricane

Secondary cat bond pricing fell 2 percent in the first quarter of 2012 as an active new issuance pipeline and selling pressure pushed the market down, according to Aon Benfield Securities.

The capital markets are benefitting this year from a continued drive among state-backed US insurance carriers to offload their risk due to tight budgets and the rising cost of traditional property cat cover

Mexico is planning to transfer nearly all its federal catastrophe risk to the capital markets after pioneering the first sovereign parametric cat bond in 2006

North Atlantic hurricane activity is set to be below average in the coming season, according to the latest reports from Colorado State University's Department of Atmospheric Science

Former Climate Exchange CEO Neil Eckert is moving closer to a deal to buy back the trading rights to the Ifex catastrophe-linked derivatives in time for trading during the 2012 wind season, Trading Risk understands

In the largest ever first quarter of cat bond issuance, Swiss Re's $200mn Combine Re offering stood out for an innovative structure that the reinsurer hopes will open up the market to more sponsors

After a quiet start to 2012 following last year's near record global cat losses, property cat underwriters can expect North Atlantic hurricane activity to be below average in the coming season, according to latest forecasts.

Florida Citizens Property Insurance has launched its first cat bond, Everglades Re, seeking $200mn of cover against hurricane losses on the Florida coast, Trading Risk understands.

Allianz will close its new US hurricane and quake cat bond Blue Danube at $240mn, up from a target of $200mn, Trading Risk understands

Mexico is planning to transfer nearly all its federal catastrophe risk to the capital markets after pioneering the first sovereign parametric cat bond in 2006.

Trading in hurricane options has started strongly in 2012 with $15mn limit traded on the Chicago Mercantile Exchange (CME) in January and another $30mn of buy orders understood to be in the market.

Two bonds with unusual diversifying risk were circulating the cat bond market as Trading Risk went to press, along with Swiss Re's dual-cedant Combine Re.