ILS

Australian carrier QBE is set to sell Deep South, SIU and Community Association Underwriters (CAU) to Alliant for more than $100mn less than it paid to acquire the firms, according to data collated by The Insurance Insider.

The challenges faced by hedge fund reinsurers in the current investment climate came under the spotlight last week, adding fuel to the debate over the efficacy of the model.

Apollo Global Management, the multi-strategy investment heavyweight, is close to acquiring Chaucer's $300mn UK motor book and has hired the former Giles CEO Brendan McManus to lead the venture, The Insurance Insider can reveal.

The continued presence of alternative capital could force a number of traditional reinsurers to merge or cease to exist, according to Fitch Ratings

Ratings agency AM Best has put PaCRe's A- financial strength rating under review with negative implications after the carrier revealed a shortfall in its overall performance compared to its business plan

Hiscox said that assets under management in its Kiskadee funds management division had grown to more than $400mn at 1 January, up from $110mn at the start of 2014.

Data from Lane Financial showed that the average insurance-linked securities (ILS) spread is now 2.36 percent above a 2.24 percent expected loss - the thinnest margin since the company began tracking records in 2002. 

CatCo recorded 14 percent growth in net asset value (NAV) last year for its London-listed fund, even after reserving for a small US storm loss.

Cat bond sponsors may push for broader coverage in 2015 as insurance-linked securities (ILS) broker-dealers said that they expected ILS market volumes to continue expanding.

Validus subsidiary AlphaCat Managers has raised $409mn of new capital for its ILS funds and renewed its sidecar, AlphaCat 2015, at $155mn.

Guy Carpenter has estimated that the convergence market grew by a third in 2014, rising from $45bn to $60bn in size.

Retro giant CatCo has bought a $175mn industry loss warranty (ILW) to cover US and non-US exposures on its book of business, The Insurance Insider can reveal.