June 19th, 2013
Catastrophe Bond Activity
Posted at 1:00 AM ET
Here we review recent GC Capital Ideas stories that have reported catastrophe bond transactions in which GC Securities was involved.
Author Archive
June 18th, 2013
Chart: RBC Ratio to BCAR
Posted at 1:00 AM ET
In Figure 1, RBC Ratio is defined as the ratio of aggregate Total Adjusted Capital to Authorized Control Level RBC for each of 111 combined insurance groups. Plotted against BCAR, there is clearly a strong correlation between the measures, though the relationship is not perfect.
June 17th, 2013
A.M. Best BCAR Updates
Posted at 1:00 AM ET
A briefing prepared by Guy Carpenter’s Ratings Advisory Team outlines important changes to the BCAR methodology and their implications.
June 14th, 2013
Wildfires in Colorado, United States
Posted at 9:08 AM ET
A wildfire northeast of Colorado Springs, Colorado has become the state’s most destructive wildfire in history. The Black Forest Fire has destroyed 360 homes, surpassing the 347 homes destroyed in the Waldo Canyon Fire last year. At least 14 homes have been partially damaged and 79 homes could not be verified. The blaze covers about 15,000 acres of land and has no solid containment lines. The fire has forced the evacuation of more than 38,000 people in areas nearby, including parts of Colorado Springs. No deaths or injuries have been reported.
June 14th, 2013
Week’s Top Stories: June 8 - 14, 2013
Posted at 8:00 AM ET
Chart: Alternative Capacity as a Percentage of Global Property Catastrophe Reinsurance Limit: The increasing influence of alternative capacity is demonstrated by the chart below, which shows the growth of convergence capacity as a percentage of global property catastrophe limit from 2008 to 2013 (projected).
Influx of Convergence Capital Triggers Downward Pressure on Pricing at June 1 Renewals: Guy Carpenter reports that the reinsurance sector has witnessed dynamic capital growth in 2012 and 2013, spurred by an influx of capital from alternative sources. In its June 2013 renewal briefing, Guy Carpenter finds that this surge in alternative or “convergence” capital has changed the nature of the sector’s capital structure, as investors grow increasingly comfortable with supplying capacity through a convergence of both traditional and alternative vehicles. This market dynamic has also begun to impact significantly reinsurance pricing for peak property catastrophe risks in the U.S., with surplus capacity and lower target returns driving downward pressure on pricing for June 1 renewals and likely through the remainder of 2013.
Chart: Evolution of Shareholders’ Funds for the Guy Carpenter Global Reinsurance Composite: The growth in the Guy Carpenter Global Reinsurance Composite is illustrated below, covering 2011 to first quarter 2013.
Tokio Solution Management and GC Securities Create Private Catastrophe Bond Platform: Tokio Solution Management Ltd. (”Tokio Solution”) and GC Securities*, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/SIPC, are pleased to announce the creation and launch of a private catastrophe bond platform called the Tokio TensaiTM Platform.
Guy Carpenter’s MetaRisk® ReserveTM Awarded Patent as Breakthrough Innovation in Reserve Risk Modeling: Guy Carpenter & Company has been awarded a patent for MetaRisk Reserve by the U.S. Patent Office for creating a unique and easy-to-use predictive model for the analysis of reserve risk.
Most Popular Keyword: cwil
And, you may have missed…..
Chart: 2013 144A Catastrophe Bond Issuance: Details on each transaction completed during 2013 year to date are presented.
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* 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.
June 13th, 2013
Chart: Alternative Capacity as a Percentage of Global Property Catastrophe Reinsurance Limit
Posted at 1:00 AM ET
The increasing influence of alternative capacity is demonstrated by the chart below, which shows the growth of convergence capacity as a percentage of global property catastrophe limit from 2008 to 2013 (projected).
June 11th, 2013
Guy Carpenter’s MetaRisk® Reserve™ Awarded Patent as Breakthrough Innovation in Reserve Risk Modeling
Posted at 11:00 PM ET
Guy Carpenter & Company has been awarded a patent for MetaRisk Reserve by the U.S. Patent Office for creating a unique and easy-to-use predictive model for the analysis of reserve risk.
June 11th, 2013
Chart: Evolution of Shareholders’ Funds for the Guy Carpenter Global Reinsurance Composite
Posted at 1:00 AM ET
The growth in the Guy Carpenter Global Reinsurance Composite is illustrated below, covering 2011 to first quarter 2013.
June 10th, 2013
Tokio Solution Management and GC Securities Create Private Catastrophe Bond Platform
Posted at 5:00 AM ET
Tokio Solution Management Ltd. (”Tokio Solution”) and GC Securities*, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/SIPC, are pleased to announce the creation and launch of a private catastrophe bond platform called the Tokio TensaiTM Platform.
June 7th, 2013
Week’s Top Stories: June 1 - 7, 2013
Posted at 9:35 AM ET
Influx of Convergence Capital Triggers Downward Pressure on Pricing at June 1 Renewals: Guy Carpenter reports that the reinsurance sector has witnessed dynamic capital growth in 2012 and 2013, spurred by an influx of capital from alternative sources. In its June 2013 renewal briefing, Guy Carpenter finds that this surge in alternative or “convergence” capital has changed the nature of the sector’s capital structure, as investors grow increasingly comfortable with supplying capacity through a convergence of both traditional and alternative vehicles. This market dynamic has also begun to impact significantly reinsurance pricing for peak property catastrophe risks in the U.S., with surplus capacity and lower target returns driving downward pressure on pricing for June 1 renewals and likely through the remainder of 2013.
2013 Atlantic Hurricane Activity: Guy Carpenter has published a new briefing: 2013 Atlantic Hurricane Activity to Reach or Exceed 1995-2012 Average. The 2013 Atlantic hurricane season is expected to be a busy one, carrying at least average activity with respect to the 1995-2012 “active” period. Seasonal outlook providers consistently emphasize two factors: the absence of El Niño, which implicates average activity, and higher tropical Atlantic sea-surface temperatures (SSTs), which implicate higher activity.
Severe Weather Outbreak in U.S. May 28 to June 2: A multi-day severe weather outbreak occurred during the period of May 28 to June 2 affecting a large area of the United States and Southern Ontario, Canada. The outbreak occurred along a complex and evolving frontal boundary as it pushed through the mainland into and during the weekend. Affected areas include the foothills of the Rocky Mountains, the South and Central Plains, the Mississippi Valley, the Midwest, the Great Lakes and New England.
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.
Chart: 2013 144A Catastrophe Bond Issuance: Details on each transaction completed during 2013 year to date are presented.
Most Popular Keyword: catastrophe bond issuance
And, you may have missed…..
Guy Carpenter’s Aidan Pope Named Latin America Reinsurance Broking CEO of the Year: Guy Carpenter is pleased to announce that Aidan Pope has been named “Latin America Reinsurance Broking CEO of the Year” at the Reactions Latin America Awards 2013. Mr. Pope is CEO of Latin America and Caribbean (LAC) Operations for Guy Carpenter and is also on the firm’s Board of Managers.
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* 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.
