February 2012/1

Liechtenstein-based investment manager LGT Capital Management has bought Clariden Leu's ILS operations for an undisclosed sum. 0 false

London-listed reinsurer Lancashire Holdings has added $75mn of capital to its $250mn Accordion Re retro sidecar in preparation for a "very difficult renewal" for Japanese cedants at 1 April.

Hedge funds are showing renewed interest in the reinsurance sector after the catastrophe losses of 2011, ratings agency AM Best noted in a recent briefing paper.

ILS fund managers have taken their fair share of growth over the past two years, but as the property catastrophe market hardens will they be the first port of call for investors lured by rising rates?

Catlin has revealed that it managed to renew its giant xs $500mn aggregate retrocession programme, believed to be one of the largest aggregate programmes bought in the market.

Rising property catastrophe premiums gave reinsurers a bright spot as they unveiled sagging 2011 results in the opening weeks of February.

Aon CEO Greg Case praised his firm's capital markets capability despite its "lumpy" contribution to results after a bonus fourth quarter from the division.

Bermudian reinsurer RenaissanceRe brought three new strategic investment partners into its DaVinci Re sidecar as the vehicle posted a $61.3mn loss for 2011.

The AlphaCat Re 2011 sidecar run by Bermudian reinsurer Validus has bulked up to around $280mn, Trading Risk understands.

Vega, Montana upgraded; Perils estimates losses; S&P upgrades Vitality Re health

Modelling agency Eqecat says there are "significant uncertainties" over Japanese earthquake research claiming that Tokyo has a 70 percent chance of being hit by an M7 earthquake in the next four years.

Hannover Re renewed and extended its retrocession protection for 2012, albeit on stricter terms than last year after a tough 2011 for its capacity providers.

Investment manager Catco is not planning any further fundraising for the group's listed investment vehicle the Catco Reinsurance Opportunities Fund this year, it said in an update to the London Stock Exchange.

Private equity investor Aquiline Capital Partners has put significant sums to work in funds managed by Juniperus Capital as well as buying the investment manager, Trading Risk can report.

The industry loss warranty (ILW) market may need to wait for hurricane season to approach before its moment in the retro spotlight comes this year, BMS broker Stefano Nicolini says.

Hurricane options are undergoing a pre-season surge in interest, with $15mn limit traded on the Chicago Mercantile Exchange (CME) in January and another $30mn of buy orders understood to be in the market.

Nardeep Sangha, Swiss Re's new global head of life and health risk transformation, says his team is continuing a big push on the longevity side of the business this year.

Marine industry loss warranties (ILWs) may be on risk for a payout over the wreck of the Costa Concordia cruise liner, Trading Risk understands.

Investors have welcomed tighter conditions on ILS cover following unease over the Mariah Re payouts.

Modelling firm RMS has signed up Rochdale Securities as the first broker to provide secondary pricing data for the launch of its new ILS pricing tool.

The Swiss Re global cat bond price return index has continued to gradually decline in February as new issuances crowd out activity on the secondary market, the reinsurer says.

Munich Re has brought a new Queen Street cat bond to market with a $75mn US hurricane and European windstorm offering.

The ILS market has started 2012 at the forecast quick rate with conditions and prices tightening as traditional catastrophe reinsurance rates rise.

Bermudian carrier XL Capital has signalled that it will make use of alternative forms of capital when it renews its outwards reinsurance arrangements at 1 May.

Goldman Sachs' head of structured finance Michael Millette is bullish on the cat bond outlook for 2012, forecasting a $7bn year for the market in comments made to Trading Risk.

You'll notice that this issue of Trading Risk has a new look, thanks to the great work of our designer Paul.

Retro sidecars gained traction in the January renewals as at least one new vehicle, RenaissanceRe's Upsilon, joined the starting line.

Bermudian collateralised reinsurance writer Aeolus raised and deployed about $1.2bn in capital over the past year as it evolved from a private equity partnership into a third party funds manager, Trading Risk can reveal.