March 2011/1

Weatherbill raises $42mn for expansion; CME asks for time on Dodd-Frank rules; ‘Massive' life settlement fraud case heads to court

The CME has seen its first hurricane derivative trade of 2011 despite uncertainty over upcoming model changes to the CME Hurricane Index (CHI).

The over-the-counter weather markets garnered an extra $15mn-$20mn in sales from "cold-side protection" products as new clients sought cover after the cold snap early in the winter, according to Galileo Weather managing director Dan Tomlinson.

Almost $50mn of additional "cold-spot" industry loss warranties (ILWs) have traded in 2011 in the wake of losses in Australia and New Zealand, Trading Risk has learned.

Risk Management Solutions (RMS) released a sweeping upgrade to its US Hurricane Model in February that is expected to significantly increase loss estimates for property catastrophe (re)insurers.

Swiss Re's Alps upgraded; Avondale downgraded; Catlin replaces cat bond with mixed cover; Athene buys Scor's US annuity book

Ratings agency Standard & Poor's (S&P) says it does not expect catastrophe bond issuance to rise significantly in 2011 despite increased investor demand, as the soft reinsurance market and low catastrophe toll will hold back growth.

London-based investment manager Securis Investment Partners is hoping to raise up to £200mn from a closed-ended fund to be listed on the main London Stock Exchange (LSE) this month.

Purchasers of a large chunk of Solidum's $2.67mn Class A private cat bond notes reported a smooth process as the transaction matured in February.

The loss of veteran trader Dan Madison has left a hole in the Bank of America Merrill Lynch (BAML) trading desk and sparked speculation over where Madison may emerge to trade ILS.

The return of leverage to the financial markets is one factor fuelling a rise in trading of triple-X securitisations on the secondary market.

Repeat cat bond sponsor Munich Re is fast approaching the $2bn threshold for cat bond volume issued with its latest $100mn Queen Street II offering.