ILS

All underwriters (and investors) know that the only way to make serious money in any market is to be a contrarian.

The pro rata earthquake reinsurance cover of the Japanese big three insurers renewed at 1 April despite the recent catastrophe, with only modest reductions in ceding commissions achieved, reports Willis Re

Flagstone Re shares were up 4 percent in morning trading on the New York Stock exchange as investors reacted positively to the announcement of a net loss range of $80mn-$130mn from the Tohoku earthquake and tsunami in Japan.

More than two years after it took on a $500mn bridging facility at punitive interest rates with Goldman Sachs, Willis is refinancing the debt on significantly more favourable terms

Price indications on cat bonds fell in March, underlining fears in the insurance-linked securities sector that a portion of the $1.4bn outstanding capacity exposed to Japanese earthquake risk could be triggered

Munich Re placed $100mn of US and European wind cover in the cat bond market just days after the 11 March Japanese earthquake and tsunami threw the (re)insurance markets into turmoil

Reinsurance broker Aon Benfield traded over $100mn of Japanese earthquake industry loss warranties (ILW) shortly after the 11 March catastrophe, sister publication Trading Risk has learned

Cedants to around $1.4bn of outstanding Japan earthquake-exposed cat bonds face an agonising wait to discover if coverage is available, as risk modellers calculate the parametric values that trigger the majority of the notes

Start-up collateralised reinsurer Catco has raised $7.4mn of new capital from a share issue in an early sign of the market "reloading" after the recent roll-call of brutal cat losses

Flagstone Re has been out in the retro market looking to buy second and third event covers to help reinforce its capital position before the North Atlantic hurricane season starts, The Insurance Insider can reveal

Flagstone Re has asked modeller RMS to calculate whether the 11 March Japanese earthquake will activate a $60mn tranche of its 2010 Montana Re cat bond

Between $50mn and $100mn of Japanese earthquake industry loss warranties (ILW) traded shortly after the 11 March catastrophe struck north-eastern Japan, our sister title Trading Risk revealed.