October 2015/1

The mix of cat bonds issued in 2015 is looking notably more diverse than last year as third quarter diversifier deals helped lessen the dominance of North American perils.

At the recent Monte Carlo Rendez-Vous, the ILS market sent out a clear message that it had come of age and is here to stay

A group of sidecars followed by Trading Risk are on track to deliver annualised returns of 10.48 percent, according to data compiled from filings made by US fund managers Stone Ridge and Pioneer

Aon Benfield has moderated its outlook for alternative reinsurance market growth to $120bn-$150bn by 2018 from initial guidance of $150bn, Aon Securities CEO Paul Schultz said at a Monte Carlo press briefing

Bankers at Credit Suisse are hoping to tap ILS investors for an insurance securitisation covering the institution against operational risks, such as of a cyber attack or a rogue trader incident, Trading Risk understands.

Liquidity in the burgeoning market for private cat bonds and cat bond lite instruments remains limited, but commentators are hopeful that the situation should improve.

Offering only catastrophe capacity will limit the ILS market's future growth as cedants look for partners that can offer multi-line solutions, Aon Securities CEO Paul Schultz said at the Trading Risk roundtable in Monte Carlo

The US has experienced its worst year for wildfire losses since 2007, with insured losses surpassing $1bn for two fires that impacted California in September, Aon Benfield's modelling arm Impact Forecasting said.

Ostensibly the reinsurance industry gathers in Monte Carlo every September to talk about rates for the upcoming January renewals.

The impact that (re)insurance consolidation would have on buying and underwriting discipline was a major point of debate at Monte Carlo, but commentators said demand for peak zone cover is less likely to be affected

TransRe now has more than $350mn of sidecar capacity, making it a significant player in the market, head of TransRe Capital Partners Craig Hupper told Trading Risk.

A series of hedge fund reinsurer initiatives were revealed during the Monte Carlo Rendez-Vous last month, with two of the vehicles in progress likely to act as captives