November 2012/1

Changes to incoming Dodd-Frank regulations could force ILS issuers to face another layer of oversight from US regulators, a law firm has warned.

AQR wins Illinois mandate; Minnows close doors after exec moves; Third Point Re offers investment deals

Start-up ILS fund manager Eastpoint Asset Management hopes to reach the $100mn mark in its first year of operations and is targeting $500mn within three or four years, the firm's management told Trading Risk.

Specialist ILS fund manager Securis has added a new lower-risk fund to its line-up.

No superstorm - it's a hurricane for PCS; Sandy's CHI doubles Irene

The market for north-east industry loss warranties (ILWs) has dislocated as trading halts in the aftermath of Hurricane Sandy as participants attempt to gain clarity on the loss, according to Aon Benfield Global ReSpecialty deputy CEO Dan Burrows.

Investors have been willing to trade bonds exposed to uncertainty about Sandy losses, but some were subject to hefty markdowns, leading the Swiss Re Cat Bond Price Return Index down 2.6 percent the week after the storm struck.

Swiss Re and Scor nearly doubled their latest cat bond issuances as pricing on the deals fell below initial expectations due to continued strong investor demand over the past month.

This is just my third hurricane season in the industry, so perhaps you'll understand why I'd started writing 2012 off as another non-event for catastrophe losses in mid-October.

Montpelier Re is progressing with plans to expand its third party funds management business through two new ventures, Trading Risk has learned.

Sandy losses will be unevenly distributed among risk carriers in the convergence sector, with growing loss estimates signalling the prospect of more industry loss warranties (ILWs) being triggered.