ILS

Total cat bond volumes have surpassed the previous record set in 2007, as investors continue to pour capital into the alternative reinsurance market lured by prospect of the sector's relatively high yields.

Third Point Re, the Bermudian reinsurer founded by hedge fund boss Dan Loeb, plans to float on the New York Stock Exchange, using the proceeds to grow its underwriting business, the company said late last night.

Start-up insurance-linked securities (ILS) fund manager Stone Ridge Asset Management has invested a significant sum in Swiss Re's Sector Re sidecar, according to a half-year report filed last week with the Securities and Exchange Commission.

Nine months after the devastation inflicted by Superstorm Sandy, the New York Metropolitan Transportation Authority (MTA) is gearing up to issue the first cat bond to cover storm surge.

Capital market interest is pouring into the facultative markets as it has into the property catastrophe markets, GC Fac's head of US facultative risk John Trace said at a recent roundtable hosted by sister publication Inside FAC.

Cat bond sponsor American Family Mutual Insurance and service companies PCS and AIR Worldwide are being sued by liquidators of the insurer's Mariah Re bond in a $100mn dispute that calls into question their handling of the industry loss-linked deal.

Zurich-based insurance-linked securities (ILS) fund manager Twelve Capital has appointed Markus Stricker as a partner responsible for risk management, the firm announced today (12 July).

Estimated reinsurer capital rose 2 percent in the first quarter of 2013 to a fresh high of $515bn, combining with stable demand to weigh on rates at the July renewals, Aon Benfield said in a report published today (July 11).

Bernstein Research analysts have cut their recommendation on property cat specialist RenaissanceRe, citing its vulnerability to downward pressure on property cat rates from the convergence market.

Convergence market activity in 2013 has forced pricing in the capital markets to decouple from levels set by the traditional market for the first time, according to Guy Carpenter

Start-up retrocession carrier Phoenix CRetro is aiming to offer up to $100mn of limit by 1 January 2015 by pooling capital from providers in Central and Eastern Europe, Central Asia and the Middle East and North Africa.

Assurant sourced a fifth of its per-event reinsurance programme from the capital markets as it expanded the cover by 20 percent at the 1 July renewals.