Trading Risk February 2018

The second-largest ILS manager posted a $200mn incremental gain in assets under management in January as it said it chose not to draw down on some post-loss capacity.

ILS spreads have widened in the mid-to-high teens range after last year's losses, Swiss Re Capital Markets estimated in its latest quarterly market report.

Undoubtedly, prior positive returns were one of the factors that weighed with investors who supported Markel Catco's successful reload last year.

Abuse of side pockets in the financial crisis - when hedge funds locked in investors to avoid having to sell off discounted assets - has made the practice less palatable in the wider financial markets.

Bermuda-based (re)insurer XL Catlin placed more than $500mn of new catastrophe limit for 2018 and increased alternative market retro support to more than $3bn, as ceding strategies among major carriers diverged following last year's losses.

Wildfire losses had a varying impact on some of the reinsurer-affiliated ILS platforms in the fourth quarter.

Former Swiss Re team launch brokerage; AHJ launches capital markets unit; African agency's cat bond plans; Kramer's fund backs weather MGA