July 2010/1

The fifth named storm of the 2010 North Atlantic hurricane season strengthened to a category 4 hurricane overnight (30 August) as it tracks northwest past Puerto Rico.

Leading ILS investor Clariden Leu has hired a portfolio manager with a view to expanding its strategy in the area of life insurance-linked investments, Trading Risk can reveal.

US hedge fund manager Horton Point is marketing a dedicated ILS fund to investors as it rethinks its multi-strategy offerings in the wake of the credit crisis.

Leading ILS investor Clariden Leu has closed a groundbreaking ILS transaction, using the securitisation power of its Swiss bank franchise to transform insurance risk into much-needed investments for its flagship Cat Bond Fund, Trading Risk can reveal.

Trade body the Life and Longevity Markets Association (LLMA) is getting closer to its goal of releasing a standard index to help boost trading in the nascent longevity risk market, as it publishes a draft framework on building such indices.

Catastrophe bond sales will quickly regain the $7bn peaks reached in 2007 with more frequent and larger deals as financial markets stabilise, predicts the annual ILS report from broker Aon Benfield Securities.

Current market conditions are ripe for another large British pension scheme to transfer risk via a DIY buy-in over the summer, Hymans Robertson liability management specialist James Mullins says.

Total capital invested in the catastrophe bond market has dropped by $693mn since the end of last year despite a bumper second quarter for new issuance, according to Guy Carpenter figures.

Buyers of lower trigger level marine industry loss warranties (ILWs) are struggling to find affordable cover as sellers effectively take the contracts off the counter in the wake of Deepwater Horizon, Trading Risk can reveal.

Secondary market cat bond pricing has increased by 0.2 percent in the week to 16 July, showing weak signs of recovery after a mammoth eight-week slide which saw valuations fall more than 2 percent.

Cat derivatives trader Jeremy Crowch has left Evolution Markets to join independent London broker Miller Insurance Services, Trading Risk understands.

Pension funds are continuing to diversify their range of alternative asset investments, with a total of $817bn invested in the class during 2009 through funds of funds, according to research from Towers Watson and the Financial Times.

A combination of the Euro currency crisis and pressure on mark-to-market pricing of cat bonds has led to negative returns for some dedicated cat fund investors.

In our regular ILW quarterly update, Willis Re executive director Henry Kingham sees strong Q2 ILS issuance starving ILW buyers of capital markets capacity. ILWs now offer a hard market haven for those with the cash to invest...

Aggregate hurricane index options - which trigger based on the storm toll across an entire season - have proved a popular option in trading of 2010 catastrophe derivatives on the Chicago Mercantile Exchange (CME).

Weather consulting group MDA EarthSat has launched a Hurricane Index Forecast as a new potential reference for trading futures on the CME platform.

A sultry summer in the US has fanned weather derivatives trading on the Chicago Mercantile Exchange (CME).

Munich Re sets Perils trigger on EUR50mn dealManning off to new horizonsLife Settlement code of practiceVolcker Rule ready for vote

ILS investors are still keen to invest and diversify their portfolios despite a glut of US wind catastrophe bond issues this season, says a report from reinsurance broker Willis Re.

The tally of major catastrophe losses in the first half of 2010 could reach $24bn, with fears of further deterioration in the months ahead, analysis from our sister publication The Insurance Insider has revealed.

Rothesay Life insures BA pension schemeS&P lowers ART rating RMS launches longevity model

The regional disaster insurance fund for Caribbean governments has increased coverage limits for the coming year, albeit at the expense of hurricane cover ahead of what is forecast to be an above-average wind season.

As one of the industry's leading cat bond managers with a global capital market reach, Goldman Sachs has a unique perspective on the ILS market. Here, the firm's co-head of America's securitisation, Michael Millette, analyses the changing face of cat bond investors...

Two recent (re)insurance securitisations have offered the market much needed diversity from the glut of US wind products.

Two US subsidiaries of UK insurer Aviva Group have completed a $325mn Regulation XXX reserve financing deal with Credit Agricole, continuing a series of transactions predicted by Trading Risk.

Bermuda-headquartered (re)insurer Hiscox has eschewed contingent capital solutions and renewed a three-year revolving credit facility to take advantage of an expected hardening market if there is a heavy US wind season.

A stalled longevity swap by Premier Foods may be brought back to life, as market factors prove more compelling than the estimated 3-10 percent pricing gap believed to be slowing transactions in the nascent market, Trading Risk understands