June 2012/1

Luxembourg-based ILS fund manager Eskatos Capital Management has taken in a number of small new mandates since the start of the year amounting to about EUR30mn to take assets under management in its flagship Multistrategy ILS fund to EUR135mn.

Industry loss warranty (ILW) prices for peak US wind covers have dropped about 10 percent in June amid continued quiet trading conditions after the month's traditional reinsurance renewals closed smoothly, Trading Risk understands.

A couple of large cat bond bid lists were presented to the market in May, with brokers across the secondary ILS sector charged with soliciting quotes on a wide range of outstanding bonds, Trading Risk understands.

Swiss Re's global cat bond performance price return index has surged in early June, with strong buying demand reversing the usual spread widening seen at this time of year.

Everglades Re, the first cat bond from Florida's homeowner insurer of last resort, Citizens Insurance, traded at 103.5 cents to the dollar in early June, as prices for recent issuances rose significantly on the secondary market.

The reset of Travelers' 2009 cat bond Longpoint Re II under the new RMS Version 11 hurricane model created a $1.25bn hole in the insurer's previously tight US cat programme, as sister publication The Insurance Insider reported this month.

The gamble of being one of the last cat bond issuers to market ahead of the US hurricane season paid off for Travelers this year as it was the only sponsor to see prices on its offer narrow during the marketing process.

Bermudian collateralised reinsurance writer Aeolus is understood to have grown its capital base to $1.7bn after completing further fundraising under its new structure in the first half of the year.

Where did the past six months go? Hurricane season is already upon us, it's the Trading Risk awards next week and Monte Carlo bookings are starting to go in the diary.

Institutional investors are continuing to swell the convergence market as a stream of new mandates were approved before the official start of the US wind season on 1 June, Trading Risk understands.

Bermudian (re)insurer Alterra is still working on a renewal of its retro-focused $200mn+ sidecar New Point Re IV, Trading Risk understands.