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ILS

  • Regulators praised the stability of European insurers as they released stress test findings this month but investor confidence ebbed and flowed ahead of a key political decision on the Greek debt crisis towards the end of July.
  • US investment firm AQR Capital Management has confirmed that it is setting up a reinsurance investment team led by ex-Magnetar executive Andrew Sterge, as revealed by The Insurance Insider's sister publication Trading Risk earlier this month.
  • A $150mn Californian earthquake cat bond, Embarcadero Re, is circulating the ILS market and will be marketed by Deutsche Bank, sister title Trading Risk understands.
  • Glacier Re, the Swiss-based reinsurer currently in run-off, could reclaim $27mn from a cat bond it sponsored in 2008 to help pay $175mn estimated net losses from 2008's Hurricane Ike.
  • Capital market reinsurers could gain an edge on their traditional competitors in the European market as economic instability grows, broker Aon Benfield Securities said in its quarterly report on the insurance-linked securities (ILS) market.
  • Capital markets may contribute $2.5bn towards insurance payments on 2011 disasters across the insurance-linked securities (ILS), industry loss warranty (ILW) and collateralised reinsurance and retro markets, according to research from sister publication Trading Risk.
  • Cat bonds can provide a cheaper alternative to traditional cover following soaring retro rates in 2011, according to broker Willis Re
  • The impact of RMS' new US model was thrown into sharp relief this week when Standard & Poor's downgraded six of the cat bond issues it had put on CreditWatch negative following the launch of version 11.0.
  • The California Earthquake Authority (CEA) board has approved a $150mn single peril cat bond that will be issued via a Bermudian reinsurer.
  • Outstanding cat bond capacity fell to $11.5bn in Q2 2011, marking its lowest ebb since the final quarter of 2008 at the height of the financial crisis.
  • Following a first quarter in which it took $1.07bn of cat losses, The Insurance Insider has learned that PartnerRe has only very modest retro in place to guard it against the hurricane season and no retro to protect it against Japan deterioration.
  • RenaissanceRe affiliate DaVinci Re suffered $152.9mn of net cat losses in the first quarter, turning in a combined ratio of 246.3 percent, according to Moody's