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Turkish cat pool completes $100m cat bond


The Turkish Catastrophe Insurance Pool (TCIP) has completed a $100 million cat bond aimed at providing protection against earthquakes in Istanbul.

This is the second time that TCIP has utilised the capital markets to obtain earthquake protection on a parametric basis.

TCIP, managed by Eureko Sigorta, first accessed the cat bond market in 2013 via the issuance of Bosphorus 1 Re and has now sourced $500 million in total of catastrophe bond capacity from capital market investors.


Deloitte on the strategic risk from ILS – “If you can’t beat ‘em, join ‘em”


While the insurance and reinsurance market find’s itself increasingly awash with capacity from all sources, the disruptive effect of the growing insurance-linked securities (ILS) and third-party reinsurance capital is seen as a key risk to re/insurers that should not be ignored.

Deloitte logoInterest from capital markets and institutional investors in accessing the low-correlated returns of the reinsurance market has been growing steadily for many years, but accelerated rapidly as understanding and knowledge of ILS and catastrophe bond investments grew in recent years.


Alternative reinsurance capital use in Latin America constrained: Fitch


The use of third-party, or alternative, capital and the expansion of insurance-linked securities (ILS), such as catastrophe bonds and collateralized reinsurance into Latin American markets is currently constrained, meaning its participation remains low in the region.

Latin American insurers and reinsurers are still facing problems accessing new sources of risk transfer capacity due to the limited data that is available for modelling and managing catastrophe risks in the region, according to a report from rating agency Fitch Ratings.

A lack of data on historical catastrophe losses, exposure data and a lower understanding of the risks, compared to markets such as the U.S., mean that the whole insurance and reinsurance market in Latin America is further behind its northern cousin.


Alternative reinsurance capital can narrow protection gap: Swiss Re


According to an interview with global reinsurer Swiss Re’s CEO, alternative reinsurance capital is not something to be feared for the company, rather it is an essential source of capacity to help provide insurance and reinsurance for the world’s uninsured risks.

Reuters’ interview with Swiss Re CEO Michel M. Liès discusses the current state of the reinsurance market, the trajectory of reinsurance pricing and the influence of alternative capital and insurance-linked securities (ILS) on the broader market.

As we wrote recently, Liès recent comments during the revealing of Swiss Re’s first-half results were focused on the fact that, despite the challenges reinsurers face, there are a significant number of opportunities in the world that reinsurance capital can help to address.

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Swiss private bank teams up with UK boutique for fund launch


Swiss private bank Banque Heritage is set to launch a catastrophe bond fund in partnership with a UK-based boutique.

The new fund, which will be formally unveiled in mid-September, will sit within the Geneva-based group’s Ucits IV SICAV fund range. Banque Heritage will provide the seed money and act as the distributor for the fund.

Management of the fund, known as the HERITAM Equinox fund, will be overseen by Coriolis Capital, which specialises in insurance and reinsurance-linked securities.


Collateralized & ILS markets up in Federated National’s reinsurance


Federated National Holding Company (FNHC) has increased its use of collateralized reinsurance and insurance-linked securities (ILS) fund capacity at its 2015 reinsurance renewal, in another example of the continued penetration of ILS capital.

Federated National (FedNat) operates two insurance companies from its Florida base, Federated National Insurance Company which provides P&C insurance including multi-peril homeowners coverage in Florida, Alabama, Georgia, Louisiana, and Texas, and Monarch National which is a newly formed Florida property insurer.


Leadenhall passes $2bn, as synergies with Amlin continue to grow


Specialist insurance and reinsurance linked investment manager Leadenhall Capital Partners LLP has reached a new milestone, passing the $2 billion of assets mark to reach $2.0077 billion, while at the same time seeing the synergies with parent Amlin grow.

Leadenhall’s insurance and reinsurance linked assets under management have grown by slightly more than approximately 6.7% over the first-half of 2015, having started the year at $1.8008 billion.

As Leadenhall has steadily increased its assets under management over the last few years, it has enabled the ILS manager and Amlin to increase the synergies from the relationship, enhancing the re/insurance group’s competitive position in a challenging marketplace.

Connecting the capital to the risk is the challenge for ILS: Tony Ursano

The influx of alternative, or third-party capital continuing to enter the global reinsurance space has driven an increase in the research and development of how to more closely connect capital with risks, according to TigerRisk President, Tony Ursano.

Speaking with A.M. BestTV recently, investment banker turned reinsurance brokerage President, Tony Ursano, discussed the impact of capital markets’ attraction to the insurance asset class, estimating that there’s roughly $70+ billion of third-party capital now invested in the insurance business in some capacity.


Szakmary replaces Pollett as CEO of Blue Capital Management


Blue Capital Management, the insurance-linked securities (ILS) and collateralized reinsurance investment manager which is now part of Endurance Specialty Holdings Ltd. since its takeover of Montpelier Re, has had a change of CEO following a resignation.

Bill Pollett was CEO of Blue Capital Management Ltd. and also Treasurer and Corporate Development and Strategy officer of Montpelier Re. He resigned from all of his roles at the reinsurance firm and ILS manager on the 12th August.

Replacing him is Adam Szakmary, who has been promoted to the role of Chief Executive Officer and Portfolio Manager of Blue Capital Management Ltd.


Michael Millette to launch Hudson Structured Capital Management


Ex-Goldman Sachs partner and managing director of structured products Michael Millette, a key figure in the development of the catastrophe bond and ILS market since the mid-1990’s, is returning with a new venture named Hudson Structured Capital Management.

Bloomberg wrote earlier today that Millette will be launching a company called Hudson Structured Capital Management, which we’ll call Hudson Structured for short, as an investment management firm focused on insurance, reinsurance and transportation as well.