January 2015/1
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Aon Benfield told clients that it expects US nationwide and Florida property catastrophe rates to slide by 7.5 to 12.5 percent in the 1 June and July renewals this year, sister title The Insurance Insider reported.
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US property cat rates fell by 7.5-15 percent in the January 2015 renewals, although Guy Carpenter's European CEO Nick Frankland described the reductions as "no drama".
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Guy Carpenter has estimated that the convergence market grew by a third in 2014, rising from $45bn to $60bn in size.
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Pioneer Investment Management has established its ILS Interval fund with $50mn of capital, and now has total assets under management of $1.6bn in the ILS sector.
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An ILS fund run by Deutsche Bank Asset Management (DBAM) began writing business in the January renewals after an extended incubation period, sources told Trading Risk.
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Full-year 2014 returns generated by seven cat bond funds tracked by Trading Risk have come in on average 43 percent lower than in 2013, reflecting the impact of market softening.
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American Strategic's cat bond Gator Re has recovered value in the New Year after the bond's annual aggregate loss tally reset.
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Data from Lane Financial showed that the average ILS spread is now 2.36 percent above a 2.24 percent expected loss - the thinnest margin since the company began tracking records in 2002.
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Cat bond traders said that activity on the secondary market was subdued in January, as there was less cash overhang than had been expected amid a large number of maturities.
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Brokers took the lead in structuring activities on the cat bond market in 2014, according to data compiled by Trading Risk.
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US life and health insurer Aetna kicked off activity on the ILS market for 2015 as it sought $200mn for its Vitality Re VI health insurance bond.
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A flurry of deals at the end of December took ILS issuance to just under $2bn for the month and pushed the 2014 total to $8.9bn, according to Trading Risk records.