First Time Cat Bond Issuers, Q1 2015: In a promising sign for the 144A P&C catastrophe bond market, one new issuer successfully obtained capital markets protection during the first quarter. Safepoint Insurance Company, seeking to establish long-term relationships with alternative capital providers, issued USD100 million of Principal At-Risk Variable Rate Notes via a newly established catastrophe bond shelf program, Manatee Re Ltd. Series 2015-1. As the deal upsized from USD75 million, the insurance-linked securities investor base accommodated the growing Florida insurer, clearly demonstrating investors’ willingness to assume risk from start-up and/or growing insurance companies seeking protection in 144A bond format.
Guy Carpenter Names Tim Gardner CEO of U.S. Operations: Guy Carpenter announced the appointment of Tim Gardner as CEO of U.S. Operations effective August 1, 2015. Mr. Gardner will be a member of the Guy Carpenter Board of Managers and he will be based in New York.
Chart: Global Property Catastrophe ROL Index 1990 to 2015: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2015.
Private Catastrophe Bond Market, Q1 2015: The private catastrophe bond market continues to grow steadily in 2015, with USD196.7 million of limit placed in rule 4(2) private placement format via six transactions through March 31, 2015. The 2015 year-to-date volume (through March 31, 2015) has exceeded the total full-year issuance in the individual years 2011, 2012 and 2013. Total year-end issuance in 2014 was USD561.5 million across 17 transactions. As the industry continues to develop and enhance platforms to facilitate issuance of smaller catastrophe bonds, it is likely the market will continue to see further issuance in such a format over 2015.
June 1, 2015 Renewals Show Rate of Price Declines Moderating: Guy Carpenter & Company, LLC, a leading global risk and reinsurance specialist and a wholly owned subsidiary of Marsh & McLennan Companies (NYSE:MMC), reports that after two years of price decreases averaging 15 percent on U.S. property catastrophe placements, risk-adjusted pricing moderated at the most recent June renewals.
And, You May Have Missed…
Insured Cat Losses - Europe/Middle East/Africa - 2014: Insured losses for the regions encompassing Europe, the Middle East and Africa accounted for around 21 percent of global insured losses in 2014. The most significant events included the severe convective outbreak (hail and windstorm Ela) that affected areas including Germany, France, Belgium and Austria. A frontal boundary crossing the area initiated severe thunderstorms and supercells. The thunderstorms inflicted damaging wind gusts and hail over a widespread area with reports of hail exceeding seven centimeters (2.8 inches) in diameter and isolated reports of hailstones as large as 12 centimeters (4.7 inches). Estimated insured losses from this event were around USD2.8 billion.
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