1. GC Securities*: First Quarter Cat Bond Activity Signals Robust Issuance Ahead: GC Securities released an analysis of first quarter activity and trends within the catastrophe risk market for 2013. Two natural peril-exposed catastrophe bond transactions closed during the first quarter of 2013, for a total of USD520 million of issuance. This seemingly low level of primary issuance activity is deceiving, however, as activity in the capital markets and the influence of “non-traditional” capacity - a term that is rapidly approaching obsolescence - has never been higher.
2. Chart: Global Natural Catastrophe Losses: The extent of rising insured losses from global natural catastrophes over the last 40 years is illustrated below.
3. April 1 Renewals See Reinsurance Pricing Stabilize Amid Dynamic Capital Growth: Guy Carpenter reports that dynamic capital growth and ample reinsurance capacity resulted in a relatively stable renewal at April 1, 2013. In a briefing released today, Guy Carpenter comments that the convergence of traditional and alternative capital sources is changing the marketplace, with non-traditional capacity now making up an estimated 14 percent of global property catastrophe limit.
4. Chart: 2013 144A Catastrophe Bond Issuance: Details on each transaction completed during 2013 year to date are presented.
5. Guy Carpenter Asia-Pacific Climate Impact Centre Publishes Fourth Annual Report on Climate Issues: The Guy Carpenter Asia-Pacific Climate Impact Centre (GCACIC), a joint initiative of Guy Carpenter and City University of Hong Kong, today released its fourth annual report presenting the findings of the GCACIC’s research activities from the past year. The report details the findings of 22 projects conducted by the GCACIC, which focus on climate problems in the Asia-Pacific region as well as on a global scale.
6. Chart: Catastrophe Bond Issuance by Quarter: During the first quarter of 2013 two natural peril-exposed catastrophe bond transactions closed, for a total of USD520 million of issuance.
7. Recent Terrorism Stories on GC Capital Ideas: Here we review recent GC Capital Ideas stories that cover terrorism.
8. Chart: Estimated Reinsurance Premium (Including Life) Growth by Region: While reinsurance premiums remained broadly stable in the established markets of the United States, Canada and Western Europe between 2007 and 2011, strong growth has been recorded in emerging market regions, particularly China, India and other countries in South and East Asia.
9. 2013 Reinsurance Renewals: As we look toward the June 1 reinsurance renewal next week, here we review the key GC Capital Ideas stories that have covered the prior renewals this year.
10. Microinsurance on GC Capital Ideas: Here we review recent stories on GC Capital Ideas that covered microinsurance.
* Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US registered broker-dealer and member FINRA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Services Authority. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies, Inc. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.