Trading Risk September 2017

Schroders-owned ILS manager Secquaero has won a significant $200mn+ mandate, according to sources, as a number of companies target growth in this sector.

Hurricane Harvey's impact on Texas could potentially produce an underweight loss for the ILS market relative to the broader reinsurance sector.

The $430mn Spectrum Re cat bond issued in June this year by fronting carrier Tokio Millennium Re was ultimately for the benefit of Credit Suisse's ILS entities, sources told Trading Risk.

Hurricane Harvey had much less of an impact on the cat bond market than last year's Matthew, but its quick intensification also left less time for livecat traders to manoeuvre ahead of the event.

Managers of Bermudian special purpose insurers (SPIs) are taking steps to upgrade their vehicles to Solvency II-equivalent structures, following the introduction of new German regulations last year that made it more difficult for non-European reinsurers to conduct business in the country.

The Prudential Regulation Authority (PRA) is due to issue rules based on its interpretation of the UK's recently published ILS regulations at the end of this month or in early October.

The largest component of Harvey's damage will stem from flooding in the Houston area, so who is going to take those losses?

Duncan Hennes and Valerie Rahmani have been appointed to RenaissanceRe's board of directors.

Group chief risk officer Charles Mathias has joined the board of Fidelis Insurance, following the departure of Neil McConachie, who resigned as chief financial officer and director in January.

The major Australian insurers disclosed further information on their reinsurance claims this year following several major storms and a New Zealand earthquake.

Hurricane Harvey will impact reinsurer earnings but is unlikely to spur a reversal in softening pricing, analysts said.

The latest acquisition by Heritage continues the trend for the larger Florida-based insurers to look to grow beyond their roots into "super-regional" carriers, a dynamic that is not necessarily favourable to their reinsurers.