May 2010/1

Tradition Re has ceased to broker reinsurance business, and will instead focus on its core derivatives trading activities, according to sources.

Hannover Re will not continue its "L" series of embedded value life securitisations this year with L8, despite aggressive expansion by the (re)insurance giant in the life sector."The market will not see a ‘L'-type transaction in 2010, but potentially in 2011," Regine Kielich, associate director at Hannover Life Re, told Trading Risk.

Life capacity crunch to boost swaps; Willis beefs up ILS team with Dubinsky hire; Solvency II boost for longevity swaps; Disasters fuel state pools; Perils estimates EUR1.28bn Xynthia loss

Exchange listing of catastrophe bonds could be the trigger that attracts more pension money and other institutional investors into the sector, according to Greg Wojciechowski, president and CEO of the Bermuda Stock Exchange (BSE).

Longevity risk products - including longevity swaps and life settlement portfolios -could make "great retail products" despite their complexity, according to alternative investment house Centurion Fund Managers.

Standard & Poor's (S&P) has raised its rating on Avalon Re's $135mn Class B notes from CCC to BBB+, as the notes approach maturity on 7 June 2010.

Fierce competition among cat bond dealers has pushed fees for services well below those prevailing for comparably rated securities in the capital markets.

Losses from the Deepwater Horizon oil rig disaster in the Gulf of Mexico (GoM) threaten to spill over into the convergence market, as various industry loss warranty (ILW) and collateralised reinsurance programmes could be triggered by the estimated $2bn event.

As Bermudian-headquartered (re)insurer Catlin concludes its fundraising for perpetual sidecar vehicle Long Bay Re, there is growing speculation that market maker Deutsche Bank may have to buy the lion's share of the $150mn equity at an IPO.

Interdealer broker Vyapar Capital Market Partners has launched an electronic trading platform for exchange-cleared over-the-counter (OTC) weather derivatives, Trading Risk can reveal.