October 2011/1

Euro wind models updated; Hurricane RMS overblown; Jova weakens upon strike

The administrator for the Nelson Re cat bond is fighting bond sponsor Glacier Re's claims that Hurricane Ike losses should be covered by bondholders.

Munich Re, Berkshire Hathaway, PartnerRe, Swiss Re and Top Layer Re (RenRe) are likely to take upwards of one third of the circa $1.75bn deterioration of Zenkyoren's Japan loss estimate, according to reports from sister publication The Insurance Insider.

RMS puts Paradex Roke damage at $1.4bn; Perils benefits from private market growth; Greenlight upgraded; Endurance promotes ILS expert

Loss compilation agency Property Claims Services (PCS) has placed insured losses from Hurricane Irene at $3.65bn, Trading Risk understands.

Ironically it wasn't the traditional market but comments about the ILS sector that sparked a dispute between Aon Benfield Analytics chairman Bryon Ehrhart and Catlin CEO Stephen Catlin at a Monte Carlo roundtable hosted by sister publication The Insurance Insider.

A portion of MultiCat Mexico's $50mn Class C notes changed hands in the secondary cat bond market as Hurricane Jova sped towards Mexico's Pacific coast earlier this month, Trading Risk understands.

The frenetic search for diversifying cat bond exposures has slowed as investors turn their attentions to seeking yield, Trading Risk understands.

The Swiss Re cat bond price return index has recovered from its slump at the time of Hurricane Irene, returning to trading levels last seen in March around the time of the Tohoku earthquake.

Secondary trading prices on the Mariah Re tornado bond continued to fall this month as the market anticipated significant losses on the notes.

Two "club" cat bonds circulated privately to a limited group of investors in September have added to the debate over the direction of the bond market.

Brokers say that the 1 January 2012 retrocession renewals may focus as much on the fine print of contract cover as pricing, as supply and demand in the niche market appear to be more in tune than was predicted earlier this year.