ILS

Scor has struck a contingent capital deal with UBS that allows the French reinsurer to raise up to EUR150mn in equity capital if certain natural catastrophes occur over the next three years.

As the reinsurance industry prepares to converge on Monte Carlo for the annual Rendez-Vous, news emerges of another collateralised reinsurance fund that is set to appear on the island later this year.

Two ground-breaking "cat bond-lite" deals could open the market to smaller sponsors, Swiss fund manager Clariden Leu's ILS portfolio manager Michael Stahel predicts.

Insurance-linked securities (ILS) fundraising has gained momentum in recent months as fund managers look to take advantage of a rising appetite for diversity among institutional investors

Up to four European wind bonds are tipped to come to the market in the second half of the year, which will help to take total catastrophe bond sales volumes to around the $5bn level predicted for 2010

Catco has access to potentially $1bn+ from the Middle East as trend for collateralised reinsurance funds continues

German legacy buyer Darag has formed a new subsidiary to house the small live book that it underwrites, allowing the expansive firm to focus solely on run-off acquisitions in future.

Rating agency Fitch has said the 7.1 magnitude earthquake which struck New Zealand's second largest city, Christchurch, on Saturday (4 September), will likely drive reinsurance pricing higher for the main Australian players that dominate the market

The outlook on Glacier Re's 2008 Nelson Re catastrophe bond has been downgraded after the Swiss reinsurer placed its business into run-off late last month.

Leading insurance-linked securities (ILS) investor Clariden Leu last week unveiled a $20mn a "cat bond lite" transaction that saw it transform an industry loss warranty (ILW) contract into tradable cat bond notes.

A raft of planned ILS funds were announced last week as well as the official launch of Horizon21 spin-off Twelve Capital, The Insurance Insider's sister publication Trading Risk reported.

White Mountains became the latest Bermudian to beef up its share repurchase programme last week, as (re)insurers continue to take advantage of depressed valuations to deploy idle capital.