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ILWs

  • ILS fund manager returns have begun 2012 in positive territory after the first catastrophe clear start to a year since 2009
  • Former Climate Exchange CEO Neil Eckert is moving closer to a deal to buy back the trading rights to the Ifex catastrophe-linked derivatives in time for trading during the 2012 wind season, Trading Risk understands
  • Rising ILS premiums suggest that the market is hardening, Lane Financial said in its annual review of the market
  • Pricing on the Swiss Re cat bond price return index has continued its slow plunge to a two-year low this month as significant ILS investors seek other reinsurance opportunities
  • Start-up ILS manager Petra Haven Capital hopes to begin underwriting from 2013 after raising more than half its $100mn target capital, CEO Brad Chance told Trading Risk
  • Average ILS and industry loss warranty (ILW) rates-on-line (RoL) swelled by 15 percent in Q1 2012 according to Lane Financial but the broker-dealer warned that although prices look good, there is more tail risk lurking in the market portfolio than previously.
  • Swiss Re's Sigma research unit has estimated a record $49bn of earthquake losses in 2011, helping to take the estimate of total insured natural catastrophe losses to $116bn for the year.
  • Chi Hum tells Trading Risk why a growing stability in the ILS investor base is allowing structurers to start experimenting.
  • Leading ILS fund managers John Seo and Frank Majors may run two very different shops, but both urged the market not to give into "reinsurer envy" by seeking to diversify their portfolios, speaking during panel discussions at the Securities Industry and Financial Markets Association New York conference at the start of March.
  • The average cat bond fund lost money for investors over the course of 2011, according to a Trading Risk survey of returns from a cross-section of dedicated ILS fund managers.
  • The future of Bermuda ILS start-up Dunamis is in question after funds failed to materialise to support deals pledged by the firm during the 1 January renewals, Trading Risk can reveal.
  • The industry loss warranty (ILW) market may need to wait for hurricane season to approach before its moment in the retro spotlight comes this year, BMS broker Stefano Nicolini says.
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