ILS

A handful of Florida carriers are looking to reduce their reliance on the state-backed Florida Hurricane Catastrophe Fund (FHCF), which is expected to create more than $900mn of new demand for private cover at this year's June renewals, Trading Risk reported earlier this month.

The California Earthquake Authority (CEA) topped up its traditional reinsurance limit with an extra $175mn placement in December, sister publication Trading Risk reported last week.

The UK government has formally outlined plans to legislate the tax treatment of insurance-linked securities (ILS) vehicles by including the proposal as a commitment in its annual budget proposals

The insurance-linked securities (ILS) market will face its second claim this year after Lottoland said that its ILS transaction would pay out to cover a EUR14mn jackpot win in a German lottery draw.

Major reinsurer TransRe was among the sidecar sponsors to expand its retro support in the January renewals, sister publication Trading Risk reported last week.

Plans for Lloyd's to launch an insurance index in mid-2016 could work in tandem with the push to attract more insurance-linked securities (ILS) business to London, according to International Underwriting Association chairman Malcolm Newman.

Floridian insurer Safepoint is set to close its second Manatee Re cat bond at $95mn but has dropped plans to issue a layer of notes that would have run alongside its cover from the Florida Hurricane Catastrophe Fund (FHCF), sister publication Trading Risk understands.

Securis Investment Partners has launched its first Ucits-compliant cat bond fund, continuing the trend for new offerings focused on the liquid side of the market.

Retro manager Markel Catco will record an uplift to its returns in February after the firm released a portion of its side pocket reserves set aside for potential losses from the UK floods and US convective storms.

The UK Treasury has provided details on the proposed regulatory framework that it hopes will attract insurance-linked securities (ILS) business to London, envisaging a six-to-eight-week timeframe for the Prudential Regulation Authority (PRA) to approve new structures.

Hiscox's asset management platform Kiskadee Investment Managers is on track to reach $1bn of assets under management in 2016, the (re)insurer announced as it released its 2015 results.

Shaky markets in 2015 provided new insurance-linked securities (ILS) investors with further proof of the low correlation of the asset class, K2 Advisors managing director Jonathan Malawer suggested at the Sifma IRLS 2016 conference held in New York last week (24 February).