Archive for the ‘Capital Markets’ Category



January 26th, 2016

GC Securities* Report Shows Moderated Catastrophe Bond Activity, Mixed Pricing Levels at Year-End 2015

Posted at 11:30 PM ET

GC Securities*, a division of MMC Securities LLC, a U.S. registered broker-dealer and member FINRA/NFA/SIPC, today released a briefing of catastrophe bond activity for the fourth quarter and full year analysis of 2015. According to GC Securities, although 144A property and casualty (P&C) catastrophe bond primary issuance levels were charted as uncharacteristically low in the fourth quarter, totals at year-end were only slightly lower than the all-time high levels seen in 2014, with 2015 issuance totaling USD 5.917 billion, and outstanding risk capital totaling USD 22.640 billion, as of December 31, 2015.

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January 12th, 2016

GC Capital Ideas Top Chart Room Entries: For the Year 2015

Posted at 1:00 AM ET

From one of GC Capital Ideas’ more popular categories, we highlight the top Chart Room stories viewed during the year of 2015: 

1. 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.

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2. Q1 Cat Bond Issuance Reaches Historic Volume: Chart presents the 144A P&C catastrophe bond issuance from 1998 through the first quarter of 2015. The first quarter is particularly active in terms of issuance for the P&C cat bond market and this characteristic continued into 2015 as USD1.49 billion of 144A P&C cat bond limit was successfully placed with investors, the highest first quarter volume in history.

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3. Return On Equity For Guy Carpenter Reinsurance Composite, Q1 2015: Chart presents return on equity for the Guy Carpenter Global Reinsurance Composite, 2004 through first quarter 2015.

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4. Combined Ratio For Guy Carpenter Reinsurance Composite, Q3 2015: Chart presents combined ratio for the Guy Carpenter Global Reinsurance Composite, 2004 through third quarter 2015.

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5. Private Cat Bond Market, First Half, 2015: Chart shows the private catastrophe bond market with USD 753.1 million of limit placed in rule 4(2) private placement format via fifteen transactions in the first six months of 2015. The 2015 year-to-date volume exceeded total full-year issuance in 2014 of USD 561.5 million.

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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/NFA/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. (MMCSEL), which is authorized and regulated by the Financial Conduct Authority, main office 25 The North Colonnade, Canary Wharf, London E14 5HS. 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. 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. **GC Analytics is a registered mark with the U.S. Patent and Trademark Office.

January 6th, 2016

Chart: Catastrophe Bond Issuance and Capital Outstanding - 1998 to YE 2015

Posted at 3:27 PM ET

The chart below presents catastrophe bond issuance through 2015. Total bond issuance for the year 2015 was the fourth highest historically.

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January 5th, 2016

Guy Carpenter Reports Stable Capital at January 1, 2016 Renewals

Posted at 11:30 PM ET

2016-gc-renewal-report-sm4Guy Carpenter & Company reports that overall capital levels dedicated to reinsurance have stabilized, showing no growth for the first time in several years.  In a highly competitive environment, companies assessed broader opportunities and the rate of incoming capital slowed. However, moderate loss experience kept capacity at abundant levels for the January 1, 2016 renewals. The continued scarcity of costly catastrophe losses and more than adequate capacity led to reinsurance pricing reductions, although there are signs the rate of descent is slowing as compared to 2015.  

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December 13th, 2015

GC Securities* Report Shows Catastrophe Bond Market Continues to Hold Steady

Posted at 10:30 PM ET

cat-bond-3q-2015-city-photo-smGC Securities, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/NFA/SIPC, today released a briefing and analysis of catastrophe bond activity for the third quarter of 2015, which shows healthy activity across the market and marks the fourth highest third quarter catastrophe bond issuance on record. 

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November 1st, 2015

In 2015, Growth and Innovation Demonstrated in Asia Pacific, according to Guy Carpenter Report

Posted at 3:15 PM ET

Guy Carpenter today published a new report finding that prevailing market conditions continued to allow buyers in the Asia Pacific region to achieve favorable pricing, terms and conditions as capacity exceeded demand.

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October 27th, 2015

Transforming (Re)insurance Risk

Posted at 1:00 AM ET

anger_cory-smCory Anger, Global Head of ILS Structuring, GC Securities*

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Over the past few years, the capital markets have become increasingly involved in (re)insurance risk. The capital providers have participated in sidecars, catastrophe bonds and more recently in hedge fund-backed reinsurance companies and collateralized reinsurance vehicles. They also have considerable appetite for subordinated debt as they strive for additional yield in today’s low interest rate environment. The attractiveness of (re)insurance market risk to the capital markets is clear. They obtain higher yields and the opportunity for diversification into risks that are not completely correlated with financial market risk. The way capital markets access (re)insurance risk is either through investing via specialists funds or setting up their own in-house teams to better understand and analyze (re)insurance risk.

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October 18th, 2015

Transforming (Re)insurance Risk

Posted at 8:30 PM ET

paire-eric-smmasters-unoptimised-bryan-joseph_9913-sm1Eric Paire, Head of Global Partners & Strategic Advisory EMEA, Guy Carpenter and Bryan Joseph, Principal, Vario Partners LLP

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Over the past few years, the capital markets have become increasingly involved in (re)insurance risk. The capital providers have participated in sidecars, catastrophe bonds and more recently in hedge fund-backed reinsurance companies and collateralized reinsurance vehicles. They also have considerable appetite for subordinated debt as they strive for additional yield in today’s low interest rate environment. The attractiveness of (re)insurance market risk to the capital markets is clear. They obtain higher yields and the opportunity for diversification into risks that are not completely correlated with financial market risk. The way capital markets access (re)insurance risk is either through investing via specialists funds or setting up their own in-house teams to better understand and analyze (re)insurance risk.

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October 12th, 2015

Chart: 144A P&C Cat Bonds, YTD, 2015

Posted at 1:00 AM ET

Chart shows that as of September 30, 2015, USD 21.809 billion of P&C 144A catastrophe bond risk capital was outstanding.

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September 28th, 2015

Capital With Alternative Strategic Interests Competing For Merger & Acquisition Opportunities

Posted at 1:00 AM ET

While the alternative capital entering reinsurance markets has spurred transactions in accordance with the anti-correlation theory, other investors that have entered the market via acquisition of businesses have certainly blurred the theory’s parameter of the required level of underwriting margin.

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