June 2011/1

Despite opening the year with "optimism and swagger," the cat bond market was cut down to size by the new RMS hurricane model in Q2 as new issuance was stalled by pricing uncertainty, according to broker Willis.

European exposure and loss collator, Perils AG, has added Norway and Sweden to its coverage, completing the suite of countries potentially exposed to a European windstorm.

Ratings agency AM Best has downgraded $175mn of Flagstone Re's Montana Re 2009 US wind and quake cat bond, in light of higher attachment probabilities under RMS's new Version 11.0 US hurricane model.

Tom Skwarek, managing director of corporate strategic solutions at Swiss Re, is leaving his role after 12 years with the global reinsurer.

Risk modeller RMS released its latest Europe windstorm model today (12 July), introducing three new countries to the model and increasing risk profiles in most regions.

Outstanding cat bond capacity fell to $11.5bn in Q2 2011, marking its lowest ebb since the final quarter of 2008 and the height of the financial crisis.

The California Earthquake Authority (CEA) board has approved a $150mn single peril cat bond to be issued via a Bermudian reinsurer, Trading Risk can reveal.

French-headquartered reinsurer Scor has issued EUR75mn of new shares as its contingent capital deal with investment bank UBS is triggered on rising first-quarter catastrophe loss estimates.

Broker Towers Watson Capital Markets (TWCM) has structured and sold its first cat bond deal, an $11.95mn private placement for a Floridian insurance company.

French-headquartered reinsurer Scor will draw down the first EUR75mn tranche of its contingent capital credit line from investment bank UBS after lifting its first-quarter catastrophe loss estimates by EUR10-15mn.

Guy Carpenter has said that if the demand for industry loss warranties (ILWs) is sustained then prices look set to reach an all-time high.

Non-marine retrocession rates have risen by between 10 and 25 percent since losses from March's Japan and New Zealand earthquakes hit capacity providers, according to global broker Willis Re.