Trading Risk June 2017

Swiss Re has bolstered its retro support from the Sector Re sidecar by around $100mn in the past year to take the vehicle's total capacity to $492mn, Trading Risk understands.

Forecasters are predicting an average to above-average 2017 Atlantic hurricane season, as debate continues over whether a longer-term shift to a phase of reduced activity is underway.

LGT ILS funds; Wilton Re buys Aegon US run-off businesses; Cat bond funds reopen

Jason Carne, the former ILS practice leader at KPMG Bermuda, has joined Hudson Structured Capital Management as an adviser, focusing on providing guidance on valuations and reinsurance.

Newly issued cat bonds, including the latest Alamo Re and Citrus Re 2017-1, have already traded above par on the secondary market, in a sign of strong ILS demand.

JLT Re said that "renewed vigour" from ILS markets looking to deploy capital contributed to a step-up in reinsurance rate reductions at this year's 1 June renewal.

Allstate reduced its traditional limit when it renewed its $4.42bn nationwide catastrophe reinsurance treaty at the mid-year renewals, after having cover up to $4.55bn last year, sister publication The Insurance Insider reported.

Bermuda Stock Exchange (BSX) CEO, Greg Wojciechowski, has joined the board of the Bermuda Business Development Agency (BDA), the BDA announced.

The final version of the Insurance Open Protocol has cut back the frequency of reporting it requires from ILS managers in response to feedback received during the consultation period.

Asset managers in South Korea are offering ILS strategies to local investors after the country entered the sector last year, with at least $49mn having been raised from two local distributors.

Four recent private and cat bond lite deals cleared during the mid-year renewals.

Standards set by the Hedge Fund Standards Board (HFSB) can provide a pattern for ILS managers to mitigate potential conflicts of interest, Hiscox Re ILS COO Richard Lowther told Trading Risk.