Posts Tagged ‘Capital Markets’



May 27th, 2015

GC Securities* Completes Catastrophe Bond Pelican III Re Ltd. Series 2015-1 Notes for Louisiana Citizens Property Insurance Corporation

Posted at 10:15 PM ET

GC Securities, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/NFA/SIPC, announced the placement of the Series 2015-1 Notes, with notional principal at $100,000,000, through a newly formed Bermuda domiciled catastrophe bond shelf program, Pelican III Re Ltd., to benefit Louisiana Citizens Property Insurance Corporation (”LA Citizens”). This is the third time that LA Citizens has utilized the cat bond market to manage its tropical cyclone risks.

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May 26th, 2015

Benchmarks for Enterprise Risk Management Disclosures

Posted at 1:00 AM ET

Here we present GC Capital Ideas’ stories on analyses of enterprise risk management disclosures. A 2014 study updated the analysis done in 2009, one of our most popular stories. The full briefings are attached.

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May 18th, 2015

GC Capital Ideas Videocasts

Posted at 1:00 AM ET

A key feature of GC Capital Ideas is its Videocast series. Here we review recent video posts: 

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April 27th, 2015

GC Securities* Catastrophe Bond Update, First Quarter 2015

Posted at 1:00 AM ET

High-volume maturities coupled with a diverse and steady stream of new issuances created a dynamic market environment in the first quarter of 2015. The first quarter of each year is particularly active in terms of issuance for the property/casualty (P&C) catastrophe bond market, and this characteristic continued into 2015 as USD1.49 billion of 144A P&C catastrophe bond limit was successfully placed with investors, one of the highest first quarter volumes in the history of the 144A marketplace. However, the first quarter also had the highest ever volume of 144A P&C catastrophe bonds maturing, returning USD3.544 billion of principal to investors. As of March 31, 2015, USD20.813 billion of P&C 144A catastrophe bond risk capital was outstanding.

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April 22nd, 2015

Evolving Role of Reinsurance in Public Sector Risk

Posted at 1:00 AM ET

Here we review the evolving role of reinsurance in mitigating public sector risk through the expanding deployment of reinsurance and capital market solutions: 

 

1. Capital Markets Developing Trends: Capital markets capacity continues to innovate as highlighted by the recent issuance of a catastrophe bond by the MTA . This issue, MetroCat, which came to market in July 2013, demonstrated the willingness of capital markets investors to assume storm surge and flood risk from named storms in a cost effective manner. 

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2. 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. 

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3. GC Securities* Completes First Catastrophe Bond Issued By The World Bank On Behalf Of The Caribbean Catastrophe Risk Insurance Facility: GC Securities announced the placement of Floating Rate CCRIF Catastrophe-Linked Capital at Risk Notes, with notional principal of USD30,000,000, issued by the International Bank for Reconstruction and Development, a member institution of the World Bank Group, to facilitate risk transfer on behalf of the Caribbean Catastrophe Risk Insurance Facility (the CCRIF).  CCRIF is a risk-pooling facility that is designed to limit the financial impact on its sixteen Caribbean member governments resulting from catastrophic earthquakes and hurricanes by quickly providing financial liquidity when a policy is triggered. This is the first time that the CCRIF has utilized the cat bond market and the first catastrophe bond directly issued by the World Bank.

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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 13th, 2015

GC Capital Ideas Top Chart Room Entries: First Quarter, 2015

Posted at 1:00 AM ET

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

 

1. 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.

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2. 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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3. Chart: Evolution of Dedicated Reinsurance Capital, 2013 to YE 2014: The evolution of dedicated sector capital is presented in this chart. Guy Carpenter estimates dedicated sector capital remained at near record levels having risen to approximately USD400 billion at year-end 2014 from traditional rated markets and all sources of alternative capital including sidecars, collateralized reinsurance vehicles and catastrophe bonds.

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4. Chart: Regional Property Catastrophe ROL Index, 1990 to 2015: The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe.

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5. Chart: European Property Catastrophe ROL Trends - 2007 to 2015: The chart presents the European Property Catastrophe Rate On Line (ROL) trends with correlating impact of catastrophe events for the period 2007 to January 1, 2015.

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6. Chart: Alternative Capacity as a Percentage of Catastrophe Reinsurance Limit: The chart presents alternative capital capacity as a percentage of global property catastrophe reinsurance limit from 2008 to year-end 2014.

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7. Chart: Top Ten Catastrophe Bond Transactions for 2014: The table lists the top ten catastrophe bond transactions that were completed in 2014.

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8. Chart: Combined Ratio for Guy Carpenter Composite, Q3 2014: Chart presents combined ratio for the Guy Carpenter Global Reinsurance Composite, 2004 through third quarter, 2014.

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9. Chart: Significant Insured Losses - 2011 to YE 2014: Reports losses by quarter.

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10. Chart: Return On Equity For Guy Carpenter Reinsurance Composite, Q3 2014: Chart presents return on equity for the Guy Carpenter Global Reinsurance Composite, 2004 through third quarter, 2014.

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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.

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.

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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.

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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.

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March 17th, 2015

Parametric CAT Derivatives to “Build Back Better”

Posted at 1:00 AM ET

franco_guillermo_bioGuillermo Franco, Head of Catastrophe Risk Research - EMEA

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Destruction caused by catastrophes often unfolds due to inadequate construction practices or land use planning. The likely response to these events is to strive to “build back better,” in part by addressing the mistakes of the past. Unfortunately, communities that embrace this challenge often find that they lack the financial resources for it and ambitious reconstruction projects lose momentum.

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