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Insurance Day: Collateral trust licence opens door for new Eastern European retro capacity

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Ukrainian insurer becomes first to gain CEE-wide licence for collateralised retrocession.

Reinsurers will be able to access new sources of retrocession capacity from Eastern Europe after a Kiev-based insurer was awarded the first CEE-wide licence for collateralised retro activities.

Brokbusiness has been awarded a licence from the National Bank of Ukraine to post collateral abroad as part of its retro reinsurance capacity provision.

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Artemis: Phoenix CRetro & BROKBUSINESS in CEE collateralized reinsurance push

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Phoenix CRetro, a niche Bermudian collateralized retrocessional reinsurance firm, has assisted Ukrainian insurance firm BROKBUSINESS in becoming the first CEE based re/insurer with a license to post reinsurance collateral abroad.

BROKBUSINESS, which has more than 50 branches across the Ukraine, has been awarded a licence to post collateral abroad as part of its retro reinsurance capacity provision by the National Bank of Ukraine. It is the first Central & Eastern European re/insurance entity to obtain such a license and opens up new opportunities in the international ILS markets.

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Press release

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Phoenix CRetro and BROKBUSINESS Consortium Obtains ‘First of its Kind’ CEE Licence for Collateralised Retro Activities in Ukraine

Ukraine, 16th September 2014 – Insurance company «BROKBUSINESS» (Kiev, Ukraine) – a strategic partner of Bermudian niche reinsurer Phoenix CRetro – has been awarded a licence from the National Bank of Ukraine to post collateral abroad as part of its retro reinsurance capacity provision.

This is a significant development for the local insurance industry in the CEE as obtaining such a licence (the first of its kind throughout the CEE) opens up new opportunities in the international ILS markets and reaffirms a modern trend in global CAT reinsurance that has been debated in depth at this year’s Monte Carlo Rendezvous.

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SCOR Global Investments grows ILS assets to $460m

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The asset management arm of French reinsurance firm SCOR, SCOR Global Investments, has announced that it has grown its insurance-linked assets to $460m and achieved a net average annual return to investors of 7.2% since inception three years ago.

SCOR Global Investments marks the third anniversary of its Atropos ILS strategy this month. Atropos was the firm’s first ILS fund offering, allowing SCOR to extend its expertise and natural value proposition to institutional investors looking to access the returns of insurance risk.

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AXA seeks complementary capacity in emerging markets

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In the face of intense competition for business and softening rates, reinsurers are becoming more client-orientated and better at offering bespoke products – a trend welcomed by AXA’s reinsurance buyer.

Philippe Derieux, deputy CEO of AXA Global P&C and group reinsurance officer said that the insurer is working with its reinsurance partners to buy capacity in some emerging markets as a complement to its existing coverage.

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Alternative capital, ILS take 20% of catastrophe reinsurance market: Aon Benfield

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Alternative reinsurance capital, made up of insurance-linked securities (ILS), catastrophe bonds, collateralized reinsurance, sidecars and ILW’s etc, has captured 20% of the property catastrophe reinsurance market, according to Aon Benfield.

The stunning figure, which clearly underscores the growth of the capital markets and its full-on convergence with traditional reinsurance coverage, is for an annual period of review from Aon Benfield’s latest ILS market report.

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EuropeanCEO: Bermuda is a world-class international business centre

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With deep-rooted historical connections to Europe and a range of advantages in the corporate world, Bermuda is truly a world-class international business centre

Bermuda’s connections with Europe began in 1505 when Juan de Bermúdez first discovered the islands. They were first settled in 1609. In the Age of Discovery, when mariners crisscrossed the Atlantic to search for New World riches, they black-marked the reef-encircled archipelago as a cursed ‘Isle of Devils’. Today’s entrepreneurs and venture capitalists hold no such qualms about the British overseas territory, which is now recognised more for its reputation as a world-class international business centre than for its trademark pink beaches, ‘Triangle’ and shorts.

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BDA: Bermuda’s international reputation

2014-09-09 06.02.39ORIGINAL PUBLICATION HERE 

The European Union and the BMA have signed a Cooperation Agreement regarding the Alternative Investment Fund Managers Directive (AIFMD). Co-operation agreements like these are a key element in effective supervision of non-EU AIFMs and are a pre-condition in allowing non-EU AIFMs access to EU markets or to perform fund management activities on behalf of EU managers. As part of its AIFMD compliance initiatives, the BMA will develop an opt-in regime to enable Bermuda-based AIFMs to maintain seamless operations across the European market.

The BMA is a full member of The International Organization of Securities Commissions (IOSCO), and a founding member of the International Association of Insurance Supervisors (IAIS).

Bermuda was the first offshore jurisdiction elevated to The Organisation for Economic Co-operation and Development’s (OECD) “White List” category.

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Alternative reinsurance capital up 18% to $59B in first-half 2014: Aon Benfield

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The amount of alternative capital in the reinsurance marketplace increased by 18% to reach $59 billion in the first-half of 2014, according to Aon Benfield, accounting for just over 10% of total global reinsurance capital.

According to the latest edition of reinsurance broker Aon Benfield’s Aggregate report, the broker estimates that global reinsurer capital reached $570 billion by the end of June. The number is a broad measure of the amount of capital that insurers have available to them to trade risk and includes both traditional and alternative forms of reinsurance capital.

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Reinsurance opportunity in sovereign catastrophe risk financing: S&P

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Ratings agency Standard & Poor’s highlights the opportunity for insurance, reinsurance and the insurance-linked securities (ILS) market to work with governments to provide and support sovereign catastrophe and disaster risk financing tools.

The provision of financial tools to help governments manage or transfer their exposure to catastrophe and disaster risks is a key mechanism for achieving greater disaster resilience. Standard & Poor’s latest report suggests that reinsurers have a huge opportunity to support the building of governments resilience to the financial shocks caused by large natural catastrophe events.