DOCSLIB.ORG

Trading Risk Awards 2010

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Trading Risk Awards 2010 capacity Large capacity is something that Tokio Millennium Re is known for. But we also believe that capacity is more than a financial measure. We have capacity in many additional ways: capacity to understand your business; capacity to anticipate your changing demands; capacity to provide intelligent, affordable solutions. These qualities ensure that your insurance needs are met and fulfilled, each and every time. Financial Str ength Rating A M BEST A+ Superior Standard & Poor’s rating: AA A.M. Best rating: A+ (Superior) TOKI16954 - A4 ADS_v2.indd 2 5/29/08 9:38:46 AM t R editor’s letter 03 Coming back stronger… Dear Reader, Like a knuckle-headed, brutish boxer raining blow after crunching blow on the face of an ill-matched opponent, the financial crisis pummelled the global economy in 2009. And, although the convergence sector caught a few glancing blows, it demonstrated its flexibility, strength and agility by rolling with the punches and coming back off the ropes to fight another round. Over the past year, the trading risk market has had to absorb the withdrawal of a swathe of investors, a benign natural catastrophe year which stalled cat futures trading, credit contagion and a slow return to new issuance as sponsors sheltered in a soft reinsurance market. But, by rallying as a market, tackling the problems highlighted by the collapse of Lehman Brothers, and continuing to demonstrate its limited-correlation to other financial markets, the convergence community has evolved into a yet stronger, more sophisticated and resilient sector. As Michael Millette says on page 8 of our second Annual Review, the convergence sector is equipped with the “requisite skills and discipline” to address the very different world which is emerging from the financial crisis Volatility is onmipresent – in macroeconomic trends such as interest rates, inflation and currency, but also in the future of litigation, climate change and life expectancy – and the trading risk sector can turn these uncertainties to its advantage. But – if you’ll allow me to stretch the metaphor yet further – the fight is far from over, as even the briefest of glances in this Annual Review will reveal. While there is a genuine admiration for the market’s progress in 2009, there are still uncertainties to resolve and breakthroughs to achieve if the trading risk sector is to stand as an equal to the traditional reinsurance market. These are discussed at length and over the next 50 pages. Has, for example, the convergence market proved itself as a worthy capital complement to reinsurance? How much growth potential is there in longevity risk? Will we ever see the tipping point reached in dynamically trading risk rather than the buy-and-hold approach that currently dominates? What steps are needed to achieve adequate transparency and disclosure in insurance-linked trades? And talking of progress, Trading Risk has also continued to evolve in 2009. Our annual New York conference in October was a huge success, with almost 200 market luminaries joining for lively debate on the convergence issues du jour – see page 18 for a reminder. By reading the highlights of our first roundtable (in a supplement available now), you will have as strong an understanding of the underlying trends that will shape the trading risk market in 2010 as anyone else. The success of our inaugural Trading Risk Awards in 2009 was a particular highlight – providing a platform to reward excellence and achievement in our market. I hope that you will continue to support the Awards in 2010 by submitting your entry and nominations before the 31 March deadline. So, as the bell rings to usher in a new year, it is impossible to predict exactly what 2010 will bring, but if the past is any indicator, it will be an exciting one for the sector. Here’s to a fruitful year ahead. Rebecca Bole, Editor www.trading-risk.com 2009 Review; 2010 Preview 04 tR contents 2009 review; 2010 Preview 03 Editor’s letter Risk 06 ILS analysis 08 Viewpoint Editor Rebecca Bole Goldman Sachs’ Michael Millette looks at convergence opportunities out [email protected] of economic adversity Managing Editor 10 Back to strength Jerry Frank [email protected] Swiss Re’s Martin Bisping analyses 2009 14 Life ILS analysis Art Director Paul Sargent 15 Longevity swap case study [email protected] Towers Perrin Capital Market’s Ernest Eng walks us through the Sub-Editor Aviva-RBS longevity swap Peter Williams [email protected] 16 Craig Hupper interview Transatlantic Re’s director of risk management shares his perspective on Head of Events convergence Cathy Turner [email protected] 18 Trading Risk in New York Marketing Manager Market luminaries discuss pricing, transparency and more… Amber Bates 22 Industry loss [email protected] PCS’ Gary Kerney explains that it takes time to get insured property loss Sales Director Spencer Halladey estimates right [email protected] 25 Saluting excellence Sales Executive Trading Risk Awards 2010 headline sponsor Credit Suisse Asset Rob Hughes [email protected] Management applauds the market on its resilience Business Development 28 Derivatives Director not out of puff yet… Tyrone Francis [email protected] 30 Industry loss warranties The ILW market provides a pool of vital capacity, Willis Re’s Henry Marketing Executive, Subscriptions and Events Kingham argues Aimee Pitt 33 Transparency [email protected] Elementum Advisor’s Tony Rettino outlines the benefits of disclosure Publishing Editor 34 Cat bonds Peter Hastie [email protected] ILS structures have undergone a make-over since Lehman’s collapse. Sidley Austin’s Michael Pinsel and Michael Madigan scrutinise… Printing Buckley Deane Wakefield 38 Ratings viewpoint S&P’s Cameron Heath shares the ratings agency view on recent Published by: Insider Publishing Ltd, innovations Asia House, 31-33 Lime St, 40 Investors London EC3M 7HT, UK. Tel Main: +44 (0)20 7397 0615 A new breed of insurance-linked investor emerges from the Editorial: +44 (0)20 7397 0618 financial crisis Subscriptions: +44 (0)20 7397 0619 42 Life investments Fax: +44 (0)20 7397 0616 e-mail: [email protected] Credit Suisse’s Niklaus Hilti and Marcel Grandi check the vital signs of the 2009 Insider Publishing Ltd. life insurance investment market All rights reserved. 44 Sidecars The post-Katrina sidecar structure is dead, but the vehicles continue to Trading Risk, the sister publication of tick over. Aon Benfield’s Des Potter looks under the hood… 48 Reinsurance report Subscription enquiries Analysis on reinsurer capital strength and the 2009 loss year Annie Lightholder 50 Deal directory Tel +44 (0)20 7397 0619 Comprehensive list of 2009 ILS deals and 2010 maturities Fax +44 (0)20 7397 0616 [email protected] 2009 Review; 2010 Preview www.trading-risk.com t R contents 05 40 08 44 30 16 www.trading-risk.com 2009 Review; 2010 Preview 06 tR ils An even keel A late push took 2009 issuance to $3.5bn, but as our Annual Review Subsequently, tranches of two of highlights, this ship needs a fair wind for growth in 2010… those bonds – representing $350mn of Allstate’s Willow Re and Aspen’s 009 was an excellent year for However, Swiss Re noted that the Ajax Re – defaulted on their interest 2natural catastrophe ILS, riding anticipated $3.5bn of new issuance payments this year (see table right), out the squalls and riptides of the would merely offset the $3.7bn of sending the sector into its second financial crisis to emerge into the cat bonds maturing in 2009 – leaving ever quarterly loss, according to faint sunlight with rudder and sails the sector in a static net position in Lane Financial research. intact – ready to sail into a stronger terms of outstanding ILS capacity. This, combined with the higher 2010. And with an estimated $5.1bn cost of investor capital during the A combination of a strong and of maturities expected in 2010 credit crisis, meant that new cat liquid secondary market, limited (see page 50), the ILS market bonds were deeply scrutinised credit contagion and natural will need a steady flow of new by the market in 2009 for signals catastrophe losses, improved issuance – requiring the continued of fresh structural and pricing collateral structures and a core commitment of sponsors and benchmarks for the ILS sector. dedicated ILS investor base was investors alike – to return to Spreads widened considerably – sufficient to see the market emerge absolute market growth. by around 25 percent, according to from the crisis in robust shape, with industry experts – and a series of issuance exceeding 2008 levels. r unning repairs new collateral structures attempted New cat bond capacity was The year was kick-started in to reach the holy grail of a credit predicted to reach $3.5bn for the full February with the closure of SCOR’s risk-free cat bond (see table right). year, although two deals – with an $200mn Atlas V cat bond, marking Early in the year, transactions estimated notional value of $375mn the end of a six-month issuance including Atlas V took advantage – were not closed at time of going drought caused by the wider of the US government’s Temporary to press (see table right). And a record financial market turmoil. Liquidity Guarantee Program, breaking 10 of these transactions In late 2008 four cat bonds with supported by the Federal Deposit – those closed at mid-December collateral guaranteed by Lehman Insurance Corporation as a means – increased in size during the Brothers were downgraded of guaranteeing returns on cat marketing phase, evincing strong by Standard & Poor’s (S&P) bond collateral. However, due to investor demand for the product. following the bank’s bankruptcy. the finite nature of this programme, 2009 Review; 2010 Preview www.trading-risk.com t R ILS 07 2009 cat bond issuance and collateral features alternatives were needed.
Load more

Recommended publications
  • Convergence Report-No1
    COMMITTED TO IMPROVING THE STATE OF THE WORLD Convergence of Insurance and Capital Markets A World Economic Forum Report in collaboration with Allianz Barclays Capital Deloitte State Farm Swiss Re Thomson Reuters Zurich Financial Services World Economic Forum October 2008 The Convergence of Insurance and Capital Markets is published by the World Economic Forum. The Working Papers in this volume are the work of the authors and do not represent the views of the World Economic Forum. World Economic Forum USA Inc. 3 East 54th Street 17th Floor New York, NY 10022 Tel.: +1 212 703 2300 Fax: +1 212 703 2399 E-mail: [email protected] www.weforum.org/usa World Economic Forum 91-93 route de la Capite CH-1223 Cologny/Geneva Switzerland Tel.: +41 (0)22 869 1212 Fax: +41 (0)22 786 2744 E-mail: [email protected] www.weforum.org © 2008 World Economic Forum USA Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system without explicit written permission from the World Economic Forum USA and the respective authors. REF: 091008 Order number: 1504095_08_EN Contents Foreword and Contributors 4 1 Executive Summary 6 2 The Existing Market for Insurance Risk 9 2.1 Market development 9 2.2 Market instruments 10 2.2.1 P&C bonds 10 2.2.2 Life bonds 12 2.2.3 Weather derivatives 13 2.2.4 Industry loss warranties 14 2.2.5 Cat swaps 14 2.2.6 Exchange traded cat risks 14 2.3 Market participants 15 3 Impediments
    [Show full text]
  • 2016 Sidley Global Insurance Review
    OFFICES BEIJING DALLAS LOS ANGELES SINGAPORE Suite 608, Tower C2 2001 Ross Avenue 555 West Fifth Street Level 31 Oriental Plaza Suite 3600 Los Angeles, California 90013 Six Battery Road No. 1 East Chang An Avenue Dallas, Texas 75201 +1 213 896 6000 Singapore 049909 Dong Cheng District +1 214 981 3300 +65 6230 3900 Beijing 100738, China NEW YORK +86 10 5905 5588 GENEVA 787 Seventh Avenue SYDNEY Rue du Pré-de-la-Bichette 1 New York, New York 10019 Level 10, 7 Macquarie Place BOSTON 1202 Geneva, Switzerland +1 212 839 5300 Sydney NSW 2000, Australia 60 State Street +41 22 308 00 00 +61 2 8214 2200 36th Floor PALO ALTO Boston, Massachusetts 02109 HONG KONG 1001 Page Mill Road TOKYO +1 617 223 0300 39/F, Two Int’l Finance Centre Building 1 Sidley Austin Nishikawa Central, Hong Kong Palo Alto, California 94304 Foreign Law Joint Enterprise BRUSSELS +852 2509 7888 +1 650 565 7000 Marunouchi Building 23F NEO Building 4-1, Marunouchi 2-chome Rue Montoyer 51 HOUSTON SAN FRANCISCO Chiyoda-Ku, Tokyo 100-6323, Japan Montoyerstraat 1000 Louisiana Street 555 California Street +81 3 3218 5900 B-1000 Brussels, Belgium Suite 6000 Suite 2000 +32 2 504 6400 Houston, Texas 77002 San Francisco, California 94104 WASHINGTON, D.C. March 2016 +1 713 495 4500 +1 415 772 1200 CENTURY CITY 1501 K Street N.W. Washington, D.C. 20005 1999 Avenue of the Stars LONDON SHANGHAI +1 202 736 8000 SIDLEY GLOBAL Los Angeles, California 90067 Woolgate Exchange Suite 2009 +1 310 595 9500 25 Basinghall Street 5 Corporate Avenue London, EC2V 5HA, United Kingdom 150 Hubin Road INSURANCE REVIEW CHICAGO +44 20 7360 3600 Shanghai 200021, China One South Dearborn +86 21 2322 9322 Chicago, Illinois 60603 +1 312 853 7000 sidley.com AMERICA • ASIA PACIFIC • EUROPE Attorney Advertising - For purposes of compliance with New York State Bar rules, our headquarters are Sidley Austin LLP, 787 Seventh Avenue, New York, NY 10019, 212 839 5300; One South Dearborn, Chicago, IL 60603, 312 853 7000; and 1501 K Street, N.W., Washington, D.C.
    [Show full text]
  • Global Reinsurance Guide 2015 Global Reinsurance Guide 2015 Contents
    Global Reinsurance Guide 2015 Global Reinsurance Guide 2015 Contents Overview 1 2015 Outlook: Global Reinsurance 2 Special Reports 8 Global Reinsurance’s Shifting Landscape 10 Alternative Reinsurance 2014 Market Update 16 Reinsurer Mergers and Acquisitions 24 Asian Reinsurance Markets 28 Latin American Reinsurance Markets 34 Global Reinsurers’ Mid-Year 2014 Financial Results 40 Summary of Company Reports 48 Alleghany Corporation 50 Arch Capital Group Ltd 51 AXIS Capital Holdings, Ltd 52 Berkshire Hathaway Inc. 53 Hannover Rueck SE 54 Lloyd’s of London 55 Munich Reinsurance Company 56 Reinsurance Group of America, Inc. 57 RenaissanceRe Holdings Ltd. 58 SCOR S.E. 59 Swiss Reinsurance Company Ltd 60 Validus Holdings, Ltd. 61 XL Group plc 62 Global Reinsurance Guide 2015 Contributors For information on Fitch’s rating Martyn Street process please contact: Senior Director, Insurance +44 20 3530 1211 [email protected] Europe/Middle East Lucinda Jeffrey + 44 20 3530 1350 [email protected] Brian Schneider David Turner Senior Director, Insurance + 44 20 3530 1442 +1 312 606 2321 [email protected] [email protected] North America/Bermuda Brad Istwan +1 312 368 3197 Siew Wai Wan [email protected] Senior Director, Insurance +65 6796 7217 Greg Hiltebrand [email protected] +1 312 368 5448 [email protected] Asia Chris Waterman Wayne Li Managing Director, Insurance + 852 2263 9915 +44 20 3530 1168 [email protected] [email protected] Additional
    [Show full text]
  • Willkie Insurance Industry Review Corporate and Risk Transactions, Regulation and Tax Developments
    Willkie Insurance Industry Review Corporate and Risk Transactions, Regulation and Tax Developments January 2021 Willkie Insurance Industry Review January 15, 2021 To Our Clients and Friends: As lawyers we are trained to anticipate the worst case and to always have a Plan B. This has served us well for the decades we have been advisors to the insurance industry during which we and our clients have experienced financial market dislocations and recessions, armed conflicts, natural catastrophes and terror events. But never have we experienced anything like COVID-19 and its public health, economic and social impacts. Long after this pandemic has been conquered we will be living with its consequences and the sobering and tragic human toll it has left in its wake. Before offering our insights and observations on a remarkable year, we would like to offer our thoughts and best wishes to our friends and clients who have been affected by this pandemic and to take note of the tremendous resiliency of the insurance industry and the essential role it plays in the global economy. We also wish to thank our clients for the privilege of advising them on many of the more significant transactions and issues involving the industry during this most unusual year. Sincerely, Insurance Transactional and Regulatory Practice Willkie Farr & Gallagher LLP Corporate and Risk Transactions, Regulation and Tax Developments i 2020 Year in Review I.Contents Review of M&A Activity I. Review of M&A Activity 1 ii. Credit-Linked Notes and ii. The FCA Test Case on Business A. United States and Bermuda 1 Collateral Notes vs.
    [Show full text]
  • ILS Annual Report 2019
    ILS Annual Report 2019 Alternative Capital: Strength Through Disruption Table of Contents Aon Securities’ Annual Review of the Catastrophe Bond Market . 4 Overview . 4 Catastrophe Bond Transaction Review . 7 ILS Investor Activity . 12 Aon ILS Indices . 16 ILS-Related Markets. 18 Collateralized Reinsurance Market Trends . 18 Sidecars . 19 Industry Loss Warranties (ILW) . 21 Private Placements . 22 Market Analysis by Region ................................... 24 North America . 24 Europe . 28 Asia Pacific . 29 Collateral Solutions ......................................... 33 Additional Collateral Solution Offerings . 35 Credit . 36 Market Participant Questionnaire ............................. 38 Foreword It is my pleasure to bring to you the twelfth edition of Aon Securities’ annual Insurance-Linked Securities (ILS) report . The study aims to offer an authoritative review and analysis of the ILS asset class and related developments in the market . This report is intended to be an important and useful reference document, both for ILS market participants and those with an active interest in the sector . Unless otherwise stated, its analyses cover the 12-month period ending June 30, 2019, during which time the market was uniquely tested . The period under review has been educational for market participants, as well as reassuring due to impaired bonds responding as designed . In the wake of 2017 and 2018, the suite of ILS transactions (i e. cat bonds, sidecars, collateralized reinsurance and industry loss warranties), and the mechanisms by which they respond, have been under the spotlight to a degree not seen before in the ILS market . USD5 4. billion of catastrophe bond issuance was secured in this period, and ILS capital in place has contracted from USD98 billion to USD93 billion .
    [Show full text]
  • The Contribution of Reinsurance Markets to Managing Catastrophe Risk
    The Contribution of Reinsurance Markets to Managing Catastrophe Risk Please cite this publication as: OECD (2018), The Contribution of Reinsurance Markets to Managing Catastrophe Risk, www.oecd.org/finance/the-contribution-of-reinsurance-markets-to-managing-catastrophe-risk.pdf. FOREWORD │ 3 Foreword Disasters present a broad range of human, social, financial, economic and environmental impacts, with potentially long-lasting, multi-generational effects. The financial management of these impacts is a key challenge for individuals, businesses and governments in developed and developing countries. Insurance markets can make an important contribution to the management of disaster risks by providing a source of funding for recovery and reconstruction in the aftermath of a disaster event and therefore reducing the financial burden on households, businesses and governments that would otherwise need to absorb these costs. The global reinsurance market, both traditional and alternative, provides an additional source of capital to mitigate these financial impacts, diversifying the risk away from the domestic economy and enhancing the capacity of primary insurers to provide affordable insurance cover for catastrophe risks. The Contribution of Reinsurance to Managing Catastrophe Risk makes use of a unique set of data on premiums and claims provided by global reinsurance companies to empirically examine the contribution that reinsurance has made to enhancing the capacity of the primary insurance market to manage catastrophe risk and reducing the economic and insurance market disruption that often follows catastrophic events. It examines the regulatory and supervisory measures that have been applied to risk transfer to reinsurance markets in the largest non-life insurance markets and the impact that these measures have had on the use of reinsurance and the ability of primary insurance markets to leverage the benefits of risk transfer to reinsurance markets.
    [Show full text]
  • Session 16: How Reinsurance Strategy Can Improve Your ERM Scorecard
    Session 16: How Reinsurance Strategy Can Improve your ERM Scorecard Moderator: Mario E DiCaro MAAA,FCAS Presenters: Lisa Gattel Chanzit MAAA,FCAS Brian Joseph O'Neill FSA,MAAA,CERA SOA Antitrust Disclaimer SOA Presentation Disclaimer HOW REINSURANCE CAN IMPROVE YOUR ERM SCORECARD 2018 ERM SYMPOSIUM –MIAMI, FLORIDA LISA G. CHANZIT, FCAS, MAAA, ARM LEARNING OBJECTIVES Reinsurance Decision-Making in an ERM Framework How reinsurance increases and decreases risk 3 case studies: Retention/structure decision Alternative risk transfer decision Insurance-linked security (ILS) Captive ©Risk & Regulatory Consulting LLC - Not to be Duplicated Without Prior Consent 2 REINSURANCE FUNCTIONS Expand Capacity to Write New/Additional Business Share Large Risks Among Insurers Spread the Risk of Potential Catastrophes Stabilize Underwriting Results Withdraw from a Line of Business Reduce Financial Leverage ©Risk & Regulatory Consulting LLC - Not to be Duplicated Without Prior Consent 3 SOURCES OF CAPITAL Traditional Reinsurance Supported by equity capital, with shareholders and a traditional capital model Recoveries backed by full faith and credit of Reinsurer Reinsurance Alternatives ‘New Money’ - Pensions, Hedge Funds, Mutual Funds Recoveries fully collateralized Focused on Property Catastrophe AKA Insurance-Linked Securities (ILS) ©Risk & Regulatory Consulting LLC - Not to be Duplicated Without Prior Consent 4 TRADITIONAL REINSURANCE Top 10 Global Reinsurance Groups (Life and Non-Life) Ranked by gross reinsurance premium written in 2016 (USD Millions) Source: AM Best data & research - September 5, 2017 Special Report ©Risk & Regulatory Consulting LLC - Not to be Duplicated Without Prior Consent 5 MARKET PARTICIPATION ©Risk & Regulatory Consulting LLC - Not to be Duplicated Without Prior Consent 6 TRADITIONAL REINSURANCE SOLUTIONS Quota Share – e.g.
    [Show full text]
  • Market Holds Breath As Irma Approaches
    Insight and Intelligence on the 2017 Reinsurance Rendez-Vous de Septembre 13 SEPTEMBER 2017 12 SEPTEMBER 2017 11 SEPTEMBER 2017 10 SEPTEMBER 2017 WEDNESDAY TUESDAY MONDAY SUNDAY Market holds breath as Irma approaches he global (re)insurance market is access to new sources of capital, albeit with thinly-capitalised local players following the Tmired in uncertainty as it follows the core returns under increasing pressure from drawback of the nationwides after earlier cat fate of Hurricane Irma, which has the compound rate reductions. events. potential to become the most expensive Sources have said that a $80bn-$100bn loss All buy to low attachment points and insured loss ever. would create signi cantly more distress, but will hand substantial losses to their treaty Irma, one of the most powerful storms in there is con dence that an event of this scale reinsurers, with the programmes of the history, has held the (re)insurance sector could be weathered without widespread nationwide and commercial writers also trans xed for days, with its projected failures. likely to deliver claims to cat writers despite track oscillating around the sector’s peak If the losses did mount to the their major retentions. exposures in Miami, and the stock market $125bn-$150bn range, sources suggested Traditional cat treaty reinsurers, operating oscillating in response to perceived clues on that market turmoil would ensue, with the with a global premium pool of around the possible scale of losses. potential for failures beyond the primary $20bn, could nd themselves carrying tens At the time of writing, the point where the Floridian property market, losses to the of billions of dollars of losses.
    [Show full text]
  • Alternative Capital and Its Impact on Insurance and Reinsurance
    ALTERNATIVE CAPITAL AND ITS IMPACT ON INSURANCE AND REINSURANCE MARKETS MARCH 2015 Robert P. Hartwig, Ph.D., CPCU President and Economist (212) 346-5520 [email protected] James Lynch, FCAS, MAAA Chief Actuary and Director of Information Services (212) 346-5533 [email protected] Insurance Information Institute 110 William Street New York, NY 10038 212.346.5500 EXECUTIVE SUMMARY The amount of capital used to support reinsurance1 worldwide has been growing quickly. Most of the growth continues to come from reinsurer and insurer profits, but significant new capital is pouring in from sources that barely existed 15 to 20 years ago. While these alternative capital arrangements have little impact on the typical policyholder, they have significantly affected the way reinsurance is being written worldwide. Alternative reinsurance capital is characterized by two twists on the traditional reinsurance arrangement. First, a new breed of investor is seeking out the reinsurance market—hedge funds, sovereign wealth funds, pensions and mutual funds. Second, the deals are structured differently. The new arrangements— catastrophe bonds, collateralized reinsurance and reinsurance sidecars—tend to isolate the investment from the rest of the capital supporting a reinsurer, thereby allowing the capital to enter and exit the market quickly. Alternative capital constituted 12 percent of the global reinsurance market at third- quarter 2014, more than double its market share at the end of 2010 (Figure 1).2 Aon Benfield Analytics estimates that alternative capital has tripled since 2008, growing considerably faster than traditional reinsurance capital. Growth in alternative capital is 15 percent of the overall growth of reinsurer capital in the same time period.3 (Figure 2) According to Aon, alternative capital had grown almost 25 percent from the end of 2013, and as of the third quarter 2014 stood at $61.9 billion.
    [Show full text]
  • …AFTER TWO UNEXPECTED YEARS? in 2007? We Offer a Variety of Fascinating Opinions on Pages 1 and 11 18075B BIQ.Qxp:BIQ Pg 4/9/07 8:21 AM Page 2
    18075B_BIQ.qxp:18075B_BIQ_Pg_ 4/9/07 7:39 AM Page 1 YEAR-END RESULTS & ANALYSIS Q4 12 BERMUDA’S BIQApril 2007 OWN POWER BERMUDA BROKER 17 INSURANCE QUARTERLY THE MANY © 2007 Bermuda Media FLAGS OF in association with FLAGSTONE 15 WHAT’S NEXT… It couldn’t get much better than 2006 for the Bermuda market after the misery of the previous year — see PricewaterhouseCooper’s painstakingly prepared annual figures on pages 12 and 13 — but what is in store for us …AFTER TWO UNEXPECTED YEARS? in 2007? We offer a variety of fascinating opinions on pages 1 and 11 18075B_BIQ.qxp:BIQ_Pg_ 4/9/07 8:21 AM Page 2 There is an artful balance in property OPPORTUNITY catastrophe reinsurance between acting IN THE EXTREME. on opportunity and mitigating risk, especially in extreme conditions. At IPCRe, we do both with firm discipline and a solid business model. Our clients work with IPCRe because we've earned their confidence through an experienced and consistent team, a transparent balance sheet, and the added value of excellent service. www.ipcre.bm 18075B_BIQ.qxp:BIQ_Pg_ 4/9/07 8:23 AM Page 1 THE QUOTES OF THE QUARTER “We are seeing softening “We achieved [record] results in a transitional in several markets, and year [in which] we reduced catastrophe exposures discipline will be critical… by about 50% while maintaining significant retro- BIQ Uncertainty created by cessional spend. This underscores the strengths of BERMUDA INSURANCE recent legislative changes our diversified business model.” in Florida will reduce — Chris O’Kane, Aspen QUARTERLY demand for some prod- Volume 3, Number 2 ucts.
    [Show full text]
  • Global Insurance Industry
    Practice Overview Global Insurance Industry Insurance-Linked Securities, Sidecars, Dedicated ILS Funds & Other Third Party Capital Management Insurance-Linked Securities, Sidecars, Dedicated ILS Funds & Other Third Party Capital Management TABLE OF CONTENTS Global Insurance Industry Group ................................................. 2 Insurance-Linked Securities ........................................................... 2 Sidecars, Dedicated ILS Funds & Other Third Party Capital Management ....................................................................................... 4 Other P&C Alternative Risk Transfers & Structured Finance ................................................................................................... 6 MAYER BROWN | 1 Known for: “Advising on significant Global Insurance Industry Group insurance transactions and possesses particular knowledge in the sidecar and Mayer Brown is a leading global law firm with 1,600 lawyers located in offices across the catastrophe bond spaces....they have Americas, Asia and Europe. an in-depth understanding of insurance-linked securities and life Our Global Insurance Industry Group represents industry reserve financing issues.” insurers and reinsurers, as well as brokers, banks ~ Chambers USA: Insurance and investors, in a range of transactional matters that include strategic mergers and acquisitions, Our New York, London and Chicago based team capital raising, and sophisticated insurance has represented clients in a wide variety of structured finance at the convergence
    [Show full text]
  • Asia Capital Re and Shenzhen Qianhai Agree Deal in Principle
    Insight and Intelligence on the 2016 Reinsurance Rendez-Vous de Septembre 14 SEPTEMBER 13 SEPTEMBER 12 SEPTEMBER 11 SEPTEMBER WEDNESDAY TUESDAY MONDAY SUNDAY Asia Capital Re and Shenzhen Qianhai agree deal in principle sia Capital Re looks set to secure biggest gathering, the broking sources said proposal at one stage, but from very early Aa $1bn sale to Chinese provincial they believed that management would still on in the process it was clear that it would government-owned entity Shenzhen be targeting full completion ahead of the be most highly prized by Chinese capital Qianhai Financial Holdings, The Insurance crucial 1 January renewals. looking for a mature vehicle that would Insider can reveal. allow it to bypass the growing pains of a Details of the proposed deal are being Underbidders start-up phase. closely guarded, but sources said that they Underbidders in the sale process, which Shenzhen Qianhai Financial Holdings is believed that an all-cash transaction valuing was superintended by Morgan Stanley, are a state-owned financial holding company Singapore’s biggest reinsurer at 1.25x-1.3x understood to have included Hong Kong- founded by the authority of the Qianhai trailing book value had already been agreed listed property and finance business Mason Shenzhen-Hong Kong Modern Service in principle, with an announcement believed Financial, Sirius owner China Minsheng Industry Cooperation Zone. to be imminent. Investment and Chinese conglomerate The state-owned vehicle has already It is understood that the price and terms Fosun. concluded a joint venture with HSBC to enter for the $791mn-equity business have been Most observers in the sector will consider the banking space, and is believed to have negotiated, with financing for the deal in the valuation a rich multiple for the other interests or prospects in insurance and place.
    [Show full text]