Secondary trading

Brokers could act as market makers for ILS transactions listed on the exchange.

Cat bond prices in the secondary market have begun recovering following a pre-Christmas sell-off, as investors sought to release capital ahead of the renewal, brokers said.

The insurer is expected to make significant recoveries from its aggregate cat bonds for the second year running.

The Eurekahedge ILS Advisers Index was up by 0.45 percent in August but this figure was below the 13-year average of 0.68 percent.

ILS premiums steadied after a 9.5 percent drop in the first quarter, according to Lane Financial's benchmark.

The executive has joined the Bermudian ILS manager as a senior analyst.

London-based start-up Akinova is developing an electronic trading platform for (re)insurance risk and is planning to start with listing a version of an industry loss warranty (ILWs) called an “AELO” – an Akinova Event Linked Option.

Cat bond broker-dealers said the market had plenty of impetus left after a record-breaking first half of 2017.

Secondary trading in the ILS market rose six percent year-on-year during a bumper second quarter, according to Aon Securities' Q2 2017 ILS update.

Prices on aggregate storm-exposed cat bonds are largely holding up after an active start to the storm season, as sources reported increased demand for multi-peril and earthquake diversifiers.

High volumes of new deals kick-started further activity in the secondary cat bond market and gave yields a small boost in the first quarter, but 2017 ILS returns remain well below last year's levels

Cat bond spreads rose slightly throughout February but yields remained below levels that prevailed on the ILS market a year ago, according to data from RMS.