April 6th, 2015

GC Capital Ideas Top Stories: March, 2015

Posted at 1:00 AM ET

1. 2015 Rate on Line Index Highlights: Here we highlight recent GC Capital Ideas Chart Room entries highlighting Guy Carpenter’s Rate on Line (ROL) Index at the 2015 renewal.

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2. Reinsurance Sector Capital Position: Here we highlight recent GC Capital Ideas Chart Room entries highlighting the capital position of the reinsurance sector.

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3. Guy Carpenter Launches its Innovative Casualty Catastrophe Model: GC ForCas℠: Guy Carpenter announced the launch of GC ForCas℠, its new data-driven casualty catastrophe model.

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4. Chart: P&C M&A Activity 2006 to 2015: Chart presents property/casualty (P&C) merger and acquisition (M&A) activity primarily for United States and Bermuda-based companies over the past 10 years. The chart illustrates the number of deals and deal volume over that period.

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5. Reinsurers’ Capital Strategies: Here we review recent GC Capital Ideas stories focusing on (re)insurers’ capital strategies.

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6. Centralization of Reinsurance Buying: It should come as no surprise that there is a general trend among larger cedents to centralize reinsurance buying decisions and retentions and to bundle homogeneous products. This has become possible with the improvement of available portfolio data. This practice has some obvious advantages for buyers, such as reduced spend, reduced administration, improved control over counter-party credit risks and, possibly, retention of additional profits that would otherwise be ceded to reinsurers.

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7. January 1, 2015 Renewals See Lower Pricing and Broader Coverage for Clients: Guy Carpenter reports reinsurance pricing fell at the January 1, 2015 renewals in many segments, affecting almost all lines of business and geographies, continuing recent renewal trends.

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8. GC Strategic Advisory Update: Reinsurers Ratings Challenged with Negative Sector Outlook: The major rating agencies covering the reinsurance sector (A.M. Best, S&P, Moody’s, Fitch) have all voiced concerns with the industry’s ability to adjust to the seemingly overwhelming headwinds currently facing the sector. With A.M. Best recently changing its outlook, the view of the reinsurance sector across the rating agencies is now unanimously negative.

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9. Cyber-attacks: Mounting Concerns: Here we review recent GC Capital Ideas stories on mounting concerns over cyber-attacks.

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10. Modeling Beyond Property CAT Risk: Here we review recent GC Capital Idea stories on catastrophe models that focus on exposures beyond catastrophe property risk.

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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.

April 3rd, 2015

Week’s Top Stories: March 28 — April 3, 2015

Posted at 8:00 AM ET

Global Catastrophe Overview- 2014: 2014 was a quiet year, with significant insured losses totaling around USD33 billion. Insured losses were below the ten-year and five-year moving averages of around USD59 billion and USD56 billion, respectively.

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GC Strategic Advisory Update: Reinsurers Ratings Challenged with Negative Sector Outlook: The major rating agencies covering the reinsurance sector (A.M. Best, S&P, Moody’s, Fitch) have all voiced concerns with the industry’s ability to adjust to the seemingly overwhelming headwinds currently facing the sector. With A.M. Best recently changing its outlook, the view of the reinsurance sector across the rating agencies is now unanimously negative.

Read the article>>

 

2015 Rate on Line Index Highlights: Here we highlight recent GC Capital Ideas Chart Room entries highlighting Guy Carpenter’s Rate on Line (ROL) Index at the 2015 renewal.

Read the article>>

 

January 1, 2015 Renewals See Lower Pricing and Broader Coverage for Clients: As we approach the April 2015 reinsurance renewal, we look back at the Jan. 1 renewal.

Read the article>>

 

Guy Carpenter Launches its Innovative Casualty Catastrophe Model: GC ForCas℠: Guy Carpenter announced the launch of GC ForCas℠, its new data-driven casualty catastrophe model.

Read the article>>

 

And, You May Have Missed…

Cat Bonds: 2015 Trends: Pricing levels for first quarter 2015 deals will be influenced by the number of bonds maturing during the period. January alone will see USD2.3 billion of principal returned to investors as ten transactions have or are set to mature (absent any triggering event). Additionally, another USD1.24 billion of capital will be returned to investors in February and March, taking the total notional value of first quarter 2015 maturities to USD3.54 billion.

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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.

April 2nd, 2015

Insured Cat Losses – Asia/Australasia – 2014

Posted at 1:00 AM ET

Asia and Australasia endured their share of both natural and man-made catastrophes in 2014 with 23 percent of estimated global insured losses in 2014. Notable events in the region included the disappearance of Malaysian Airlines Flight 370 in the first quarter and the crash of AirAsia Flight 8501 near Indonesia in December.

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April 1st, 2015

Insured Cat Losses – Europe/Middle East/Africa – 2014

Posted at 1:00 AM ET

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).(1) Estimated insured losses from this event were around USD2.8 billion.(2)

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March 31st, 2015

Notable Insured Global Losses in 2014

Posted at 1:00 AM ET

Notable insured losses in 2014 included the February snowstorms in Japan, frequent winter storms affecting Europe, flooding in the United Kingdom and a cold, stormy winter in the eastern half of North America. The arrival of spring in the second quarter produced several severe convective outbreaks in the United States and hail and windstorm Ela in Europe. A busy East-Pacific hurricane season brought Hurricane Odile to the Baja Peninsula. In the West Pacific, Typhoon Rammasun affected China, Vietnam and the Philippines.

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March 30th, 2015

Global Catastrophe Overview– 2014

Posted at 1:00 AM ET

2014 was a quiet year, with significant insured losses totaling around USD33 billion. Insured losses were below the ten-year and five-year moving averages of around USD59 billion and USD56 billion, respectively (see graphs below).

Continue reading…

March 27th, 2015

Week’s Top Stories: March 21 — 27, 2015

Posted at 8:00 AM ET

GC Strategic Advisory Update: Reinsurers Ratings Challenged with Negative Sector Outlook: The major rating agencies covering the reinsurance sector (A.M. Best, S&P, Moody’s, Fitch) have all voiced concerns with the industry’s ability to adjust to the seemingly overwhelming headwinds currently facing the sector. With A.M. Best recently changing its outlook, the view of the reinsurance sector across the rating agencies is now unanimously negative.

Read the article>>

 

Public Entities, Insurers of Last Resort and Compulsory Cat Pools and Disaster Facilities: The use of capital markets-based risk transfer capacity by public entities, insurers of last resort, and compulsory catastrophe pools and disaster facilities continues to expand. These deals included Turkey’s Turkish Catastrophe Insurance Pool, Mexico’s FONDEN and New Zealand’s EQC. Most large U.S. insurers of last resort, such as CEA, Citizens (FL), Citizens (LA), North Carolina Joint Underwriting Association and the North Carolina Insurance Underwriting Association (NCJUA/NCIUA), and Texas Windstorm Insurance Association, are utilizing capital markets capacity including collateralized reinsurance and catastrophe bonds.

Read the article>>

 

January 1, 2015 Renewals See Lower Pricing and Broader Coverage for Clients: As we approach the April 2015 reinsurance renewal, we look back at the Jan. 1 renewal.

Read the article>>

 

Modeling Beyond Property CAT Risk: Here we review recent GC Capital Idea stories on catastrophe models that focus on exposures beyond catastrophe property risk.

Read the article>>

 

Guy Carpenter Launches its Innovative Casualty Catastrophe Model: GC ForCas℠: Guy Carpenter announced the launch of GC ForCas℠, its new data-driven casualty catastrophe model.

Read the article>>

 

And, You May Have Missed…

2014 Cat Bond Pricing Normalizes in Q4: The continued influx of third party capital from new and existing market participants also favorably impacted insurance-linked securities (ILS) pricing for protection buyers. The continued low interest rate environment encouraged institutional investors (such as pension funds and hedge funds) to seek the higher yields offered by natural cat risk notes. As a result, sponsors took advantage of the opportunity to lock in attractive rate on line and essentially, hedge rate volatility.

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Click here to register to receive e-mail updates>>

 

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.

March 26th, 2015

January 1, 2015 Renewals See Lower Pricing and Broader Coverage for Clients

Posted at 1:00 AM ET

As we approach the April 2015 reinsurance renewal, we look back at the Jan. 1 renewal.

Continue reading…

March 25th, 2015

Public Entities, Insurers of Last Resort and Compulsory Cat Pools and Disaster Facilities

Posted at 1:00 AM ET

The use of capital markets-based risk transfer capacity by public entities, insurers of last resort, and compulsory catastrophe pools and disaster facilities continues to expand. These deals included Turkey’s Turkish Catastrophe Insurance Pool, Mexico’s FONDEN and New Zealand’s EQC. Most large U.S. insurers of last resort, such as CEA, Citizens (FL), Citizens (LA), North Carolina Joint Underwriting Association and the North Carolina Insurance Underwriting Association (NCJUA/NCIUA), and Texas Windstorm Insurance Association, are utilizing capital markets capacity including collateralized reinsurance and catastrophe bonds.

Continue reading…

March 24th, 2015

GC Strategic Advisory Update: Reinsurers Ratings Challenged with Negative Sector Outlook

Posted at 1:00 AM ET

mark-murry-small-200 Mark Murray, Senior Vice President

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The major rating agencies covering the reinsurance sector (A.M. Best, S&P, Moody’s, Fitch) have all voiced concerns with the industry’s ability to adjust to the seemingly overwhelming headwinds currently facing the sector. With A.M. Best recently changing its outlook, the view of the reinsurance sector across the rating agencies is now unanimously negative.

Continue reading…