ILS

The Prudential Regulation Authority outlined its approach to ensuring that London-based ILS vehicles meet requirements to be fully funded under Solvency II regulations, as it said ISPVs must prove they have secured funding before risk transfer.

There will be significant volumes of ILS capital trapped at year-end, particularly in the retro segment, but out of this challenge the reinsurance market is looking for opportunities to spin out new products

The $70bn gap between reported third quarter cat losses and industry loss estimates can be largely accounted for by (re)insurers and alternative markets that have not disclosed their losses, according to Morgan Stanley analysts

RenaissanceRe took about $2.2bn of gross losses from the third quarter catastrophes but was able to reduce this by two thirds after cessions to capital partners and retro providers and by recognising reinstatement premium income

The Prudential Regulation Authority (PRA) will expect insurance special purpose vehicles (ISPV) to prove they have secured funding before risk transfer under the upcoming London ILS framewor.

Singapore has announced a scheme to pay for the upfront costs of structuring catastrophe bonds

Markel Catco Investment Management has raised more than $1.8bn in the reinsurance market's biggest ever one-off fundraising effort, which it said would enable it to fund its 1 January-renewing portfolio.

XL Catlin is set to pay a higher coupon for a $150mn top-up to its cat bond cover as it agreed pricing terms on a new Galileo Re insurance-linked securities (ILS) transaction last week, Trading Risk reported.

Retro writer Markel CatCo has raised more than $1.8bn of capital, which it said would be enough to fund its 1 January renewing portfolio.

Arch Capital has completed a $368mn reinsurance deal to hand on risk from its mortgage insurance book to capital markets investors

Credit Suisse has launched two new legacy ILS vehicles for which it has already raised more than $270mn, regulatory filings show

General Insurance Corporation of India (GIC Re), India's largest reinsurer, made a disappointing debut on the Bombay Stock Exchange, with the shares falling as much as 12 percent.