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Catastrophe bonds

  • 2016 has been a year of diverging strategies for ILS fund managers, with some chasing expansion in specialty reinsurance and others focusing on branching out into new spheres of catastrophe exposure.
  • Albourne Partners senior analyst and partner Michael Hamer said developing a reporting template for insurance funds would be a "win-win" for investors and ILS managers.
  • Markdowns to the Gator Re cat bonds in late November caused average cat bond spreads to spike heading into the end of the year, according to data from RMS.
  • Returns from investing in so-called "deadcat" bonds - transactions that are nearing maturity and face little or no further catastrophe risk - have softened this year, in a reflection of generally tighter ILS market conditions.
  • Fully funded structures and approval timeframes were two of the sticking points that industry participants said needed further work as part of the draft London ILS regulations.
  • Price tightening ratcheted up for the cat bonds marketed in the fourth quarter, as investor demand remained strong with high volumes of transactions due to mature in the coming year.
  • The trend of ILS managers investing in (re)insurance debt could be set to accelerate after two Florida companies raised capital from the sector in recent weeks.
  • Florida Citizens Property Insurance will be looking to replace "a portion" of its expiring $2.16bn of reinsurance in what is shaping up to be a challenging 2017 for the company.
  • What kind of presents might be waiting for the reinsurance market under this year's Christmas tree?
  • ILS prices fell throughout 2016 in response to a decline in issuance volumes, which also drove innovation and an increased appetite for risk.
  • US property cat reinsurance pricing is set to continue sliding in the January 2017 renewals, with additional pressure on the retrocession sector as well, sources told Trading Risk.
  • Scor has expanded its contingent capital facility upon renewal by setting up a new EUR300mn ($319mn) line with BNP Paribas to replace a EUR200mn deal with UBS
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