The tropical Atlantic Ocean is toasty warm. So where are all the storms?

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The 2016 Atlantic hurricane season got off to a torrid start in May and June, but has since shut down. We shouldn’t let our guard down, though.

Historical chances of tropical storm activity ramp up substantially over the next six weeks as we move into the height of hurricane season. Warmer-than-normal ocean temperatures over much of the Atlantic and Gulf of Mexico may only add fuel to the fire.

The season thus far

In early June, three named tropical weather systems — Alex, Bonnie and Colin — had already formed in the Atlantic basin, the most on record so early in the season. But as Colorado State University hurricane researcher Phil Klotzbach cautioned, a fast start to the season doesn’t necessarily carry forward.

Упавший спутник, или Как Беларусь 10 лет назад не стала космической державой


Десять лет назад, 26 июля 2006 года, состоялся запуск первого в истории суверенной Беларуси искусственного спутника Земли БелКА, призванного проводить целый ряд исследований для профильных ведомств страны. Но вскоре после запуска российская ракета-носитель «Днепр» вместе с первым отечественным космическим аппаратом рухнула на землю.

42.TUT.BY решил восстановить хронологию событий и вспомнить, как этот инцидент отразился на всей космической отрасли Беларуси.

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Guy Carpenter: Evolution Of Risk Capital


The continued flow of new capital into the (re)insurance industry constitutes the largest change to the sector’s capital structure in recent memory. New capital has entered the market through investments in insurance-linked securities (ILS) funds, sidecars, hedge fund-backed reinsurance companies and collateralized reinsurance vehicles. Investors have increasingly been attracted to low correlation returns from catastrophe risk relative to traditional capital markets risks and the attractive yield for the measured (re)insurance risk relative to other investments, particularly in the current low inflation, low yield era.

Guy Carpenter’s estimate of dedicated reinsurance sector capital as of July 1, 2015 is approximately USD 400 billion of which the convergence capital, including catastrophe bonds, industry loss warranties, collateralized reinsurance and sidecars is USD 66 billion.


Solvency II equivalence brings certainty for Bermuda re/insurers: Timetric


Ever since Bermuda gained Solvency II-equivalence, commercial re/insurers and insurance groups have not been deprived when competing for and underwriting business in Europe, according to a report by Timetric.

Bermuda was designated as Solvency II-equivalent by the European Commission on March 24 2016, and according to the report Bermudian commercial reinsurers face a future of certainty in the market.

According to the report, the Bermuda insurance industry has improved partly due to the role captive re/insurance businesses have played in its development.


Bermuda one step closer to AIFM passports


In a decision that will be of interest to hedge-fund backed reinsurers, significant developments have been made in Bermuda’s candidacy for a European passport to facilitate business for Bermuda-based fund managers.

The European Securities and Markets Authority (ESMA) has decided that Bermuda has met three of the five criteria assessed to issue advice on the extension of Alternative Investment Fund Managers (AIFM) passports.


Collateralised reinsurance supports ILS growth beyond U.S.: Vickers, Willis Re


A spike in collateralised reinsurance activity and the overall, continued evolution of the insurance-linked securities (ILS) industry is expanding the market’s reach and influence across new peril regions, according to Chairman of Willis Re International, James Vickers.

To date, the large majority of ILS activity has occurred in U.S. property catastrophe lines, where insurance demand combines with advanced modelling capabilities and an abundance of capacity to form a mature marketplace.

Outside of North America and other developed economies and markets, risk transfer is beginning to expand and as insurers and reinsurers adapt to meet the needs of a changing landscape, ILS managers are starting to offer products that enable greater third-party capital involvement.


Demand for insurance-linked investments here to stay: Willis Towers Watson


Demand from large institutional investors, such as pension funds, for insurance and reinsurance linked investments (such as ILS funds and catastrophe bonds) is here to stay and will help the asset class continue to grow, according to Willis Towers Watson.

In its latest Global Alternatives Survey, in which it looks at the world of alternative investments and covers 10 asset classes and seven investor types, global advisory, insurance and reinsurance broking and solutions company Willis Towers Watson (WTW) finds that insurance-linked investments feature meaningfully in the survey results for the first time.

Pioneer launches ILS Bridge Fund, targets post-catastrophe inflows


Pioneer Investments is launching a new insurance-linked securities (ILS) fund strategy, named the Pioneer ILS Bridge Fund, which is designed to enable investors to maintain or grow their allocations to reinsurance as an asset class, particularly after a market-dislocating catastrophe event.

The new fund, for which a registration statement and initial prospectus has now been filed, will seek to help U.S. mutual fund manager Pioneer Investments to capitalise on the expected need for more capacity when the reinsurance market finally faces a massive catastrophe loss.

The Pioneer ILS Bridge Fund will invest in a range of insurance-linked securities (ILS), including catastrophe bonds, quota share reinsurance sidecars, collateralized reinsurance investments, industry loss warranties (ILW’s), event-linked swaps (catastrophe swaps), as well as other securities of companies in the insurance or reinsurance sector, and other types of insurance- and reinsurance-related securities. Around 80% of the fund’s assets would be expected to normally be held in ILS assets at any one time.


Bermuda captive in run off acquired by R&Q


Randall & Quilter Investment Holdings, a UK based investor in non-life legacy business, has acquired a Bermuda captive in run-off. The captive previously reinsured a number of well-known players including Arch Insurance.

Agency Program Insurance Company (APIC), a Bermuda-based Class 3 insurer in run off, has been bought for $1.4 million from a diverse base of predominately individual shareholders.


PCS signs up broker Beach for U.S., Canada & Turkey ILW’s


Reinsurance broker Beach & Associates has signed up for a license to facilitate industry-loss warranty (ILW) transactions in the United States, Canada and Turkey using Property Claim Services (PCS) data as a trigger.

PCS, a Verisk Analytics business unit, has signed up a number of reinsurance brokers or intermediaries in recent months, as it enforces a policy requiring at least one participant in an ILW or PCS industry loss triggered transaction to have a valid PCS ILW license.

With its newly secured license, Beach, a long-time PCS customer, can facilitate ILW’s covering the United States, Canada and Turkey, all countries where PCS reports on catastrophe insurance industry loss figures.