BBC Русская Служба: Центробанк России решил не менять ставку. При чем здесь плохая погода?


Банк России оставил ставку неизменной на уровне 9% на фоне ускорения роста инфляции, вызванного плохим урожаем.

Регулятор таким образом сделал паузу в процессе смягчения денежной политики: Центробанк в конце марта снизил ставку с 10% до 9,75%, а затем понижал ее в апреле и июне.

В заявлении регулятора говорится о том, что из-за холодной погоды в центральной России рост цен в июне ускорился. О такой возможности ЦБ и многие экономисты предупреждали и раньше. Регулятор также предупредил о рисках, связанных с плохим урожаем этого года, что также может привести к росту цен.

ILS reaches critical juncture in Q2, death knell for reinsurance? Willis Towers Watson Securities


The insurance-linked securities (ILS) market reached a “critical juncture” in the second-quarter of 2017, with record issuance of new catastrophe bonds, as well as rising assets under management for ILS funds, leaving Willis Towers Watson Securities to conclude that Q2 2017 could be “the death knell of the traditional property cat reinsurance model.”

Willis Towers Watson Securities (WTWS) recorded record issuance of non-life insurance-linked securities in Q2, citing $6.3 billion of issuance which, as it doesn’t include private or club deals, falls a little short of the $7 billion recorded by us in the Artemis Deal Directory and the Artemis Q2 2017 insurance-linked securities (ILS) and catastrophe bond market report.

ILS hits full capacity


The pipeline of ILS products hit a record high at the midpoint of the year, according to Paul Schultz, CEO of Aon Securities.

The insurance linked securities (ILS) market hit its stride in the first half of 2017, with various ILS products being issued at a rapid rate.

“We’ve seen a tremendous pipeline of ILS products come through during the first half of the year, and we reached an all-time high for annual issuance by the mid-point of 2017,” says Paul Schultz, CEO of Aon Securities.

“The current full year issuance record was set in 2014, when around $8.2 billion of bonds were brought to market, and we are already ahead of that figure by the end of June, which shows that we’ve had a tremendous first half of 2017 in terms of activity.”

Seven catastrophic weather events that shook Britain


From stunning landscapes to iconic landmarks, Britain is home to hundreds of unique characteristics and features, including the ever changing weather.

However, underneath often emerges a devastating dark side that can cause mass mayhem without warning.

Scorching heatwaves, gale force winds, terrifying floods, drastic droughts and freezing winters are just some of the fatal weather events the UK has endured and continues to endure, even if it is only every so often.

With all that in mind, here are seven catastrophic weather events that shook Britain…

Why Russia should embrace cat bonds


As the size of its economy grows, Russia is increasingly vulnerable to the devastating effects of a big catastrophe hitting the country. To manage these growing risks, the country’s governments and insurers should consider the many advantages of using insurance-linked securities, say Kirill Savrassov of Phoenix CRetro, Clive O’Connell of McCarthy Denning, and Rom Aviv of IBI ILS Partners.

The three of us were in Moscow at the end of May 2017 and, early one afternoon, while being driven back into the city from a meeting on the outskirts of the city we, together with the entire population of the region, were hit by a short sudden and furious storm, which killed 16 people and caused considerable damage. Local media and international weather sites reported that it was the deadliest storm to hit Moscow in 100 years of meteorological monitoring and probably the most ferocious storm in that period.

Cat bonds help TWIA surpass funding expectations for hurricane season


The Texas Windstorm Insurance Association (TWIA) has secured $4.9 billion in total aggregate funding for the 2017 hurricane season, which includes $1.1 billion of catastrophe bonds and around $800 million in the Catastrophe Reserve Trust Fund (CRTF).

TWIA’s 2017 renewal includes $2.1 billion in reinsurance, which is slightly down on the $2.2 billion for 2016, and which includes $1.1 billion in catastrophe bond transactions, being the $700 million Alamo Re Ltd. (Series 2015-1) and the $400 million Alamo Re Ltd. (Series 2017-1) deals, and $1 billion in traditional reinsurance protection.

At the programs core, the outstanding catastrophe bonds provide TWIA with multi-year structures, a stable source of cat funding at pricing levels it found, generally, comparable to the traditional reinsurance marketplace.

Mexico’s FONDEN cat bond secures $360m, priced at lowest guidance


The latest catastrophe bond that will provide a source of reinsurance risk transfer for Mexico’s Fund for Natural Disasters (El Fondo de Desastres Naturales), the IBRD / FONDEN 2017 multi-peril cat bond, has secured its targeted $360 million size, while the pricing has now been fixed at the lowest end of reduced guidance.

The deal launched aiming for a $290 million cat bond issuance to benefit Mexico’s FONDEN, issued with the assistance of the World Bank Group’s multilateral development bank, the International Bank for Reconstruction and Development (IBRD).

As we wrote yesterday the target size for this cat bond transaction jumped to $360 million and now we can report that this upsize has been achieved, and the transaction has now been priced.

Symbiotic relationship between ILS & reinsurance key for Asia


In order for insurance-linked securities (ILS) and capital market investors to increase their prominence in Asia education remains a key issue, as too does the ability for the symbiotic relationship between traditional and alternative to be fostered in order to help regional cedents understand the relevance of ILS to their risk transfer needs.

Artemis recently held its second conference in Asia, at the iconic Marina Bay Sands complex in Singapore on 13th July 2017 with 170 delegates gathering to hear from numerous leading ILS professionals, discuss the state of ILS in Asian insurance and reinsurance markets and to network with attendees.

The day featured speakers from around the globe, with ILS and collateralized reinsurance experts, ILS fund managers, service providers, ceding companies and local market participants all playing a role in the discussions that happened on stage.

Target for Mexico’s FONDEN 2017 cat bond lifted to $360m


The target size of the recently launched IBRD / FONDEN 2017 multi-peril catastrophe bond, which will secure a source of reinsurance risk transfer for Mexico’s Fund for Natural Disasters (El Fondo de Desastres Naturales), has been increased by 24% with the deal now expected to result in issuance of up to $360 million of notes.

The deal launched ten days ago, with a transaction aiming for a $290 million cat bond issuance to benefit Mexico’s FONDEN. The transaction is being issued with the assistance of the World Bank Group’s multilateral development bank, the International Bank for Reconstruction and Development (IBRD) with three tranches of catastrophe-linked Capital At Risk notes targeted.

ILS & cat bond growth strong but “one-dimensional” – Johansmeyer, PCS


Despite catastrophe bond and insurance-linked securities (ILS) issuance breaking records in 2017, with H1 issuance reaching a staggering $9.761 billion, growth remains “one-dimensional” and entering new lines of business is a top industry priority, according to Tom Johansmeyer, Assistant Vice President (AVP), PCS Strategy and Development.

PCS has launched its 2017 H1 Catastrophe Bond Report, which, like the Artemis Q2 2017 Catastrophe Bond & ILS Market Report, reveals that a record-breaking first and second-quarter has seen issuance reach its highest ever total for a single year, and the outstanding market reach a new high, of $29.3 billion.