October 2014/1

Q. How does the pricing process for cat bonds work?

The recent Mariah Re dispute serves as a reminder to participants in ILS transactions of the value of clear and transparent legal documents and disclosures to mitigate the litigation risks when claims materially exceed modelled losses.

Reinsurers and hedge funds increased their participation in the cat bond market over the 2013-2014 year as institutional investors pulled back, Aon Benfield Securities said in its annual review of the market.

Paul Mosquera is leaving AQR Re, where he was a senior underwriter in the Bermuda office, Trading Risk understands

The Mariah Re tornado bond lawsuit has resulted in legal changes designed to reinforce the independence of cat bond administrators.

Floridian insurer Homeowners Choice P&C Insurance Company (HCI) has been approved to take over its first batch of wind-only policies from state-backed insurer Citizens, in a move that could lead it to increase its reinsurance cover next year

Twelve Capital CEO Christoph Buerer says that opening a new London office will ensure the firm is "where the talent is" after it added several new analysts to the team

DCG Iris shareholders vote for wind-up; IBM's UK pension plan commits to Nephila; Nephila and Kinesis win at Insider Honours

The Royal Bank of Scotland (RBS) pension fund has reduced its allocations to the ILS sector over the past year as spreads have compressed

Reinsurers and hedge funds increased their participation in the cat bond market over the 2013-2014 year as institutional investors pulled back, Aon Benfield Securities said in its annual review of the market.

Returns generated by seven cat bond funds tracked by Trading Risk in the year to date are a third lower than the results recorded in the same period last year

Global insurer Ace is working on two initiatives that could significantly consolidate its reinsurance spending, sister publication The Insurance Insider has revealed.