Posts Tagged ‘CRESTA’
European insurers and reinsurers will face requirements for full compliance with the new Solvency II capital regime requirements in just over two years. Even if this introduction is phased in — as the European Commission has reportedly indicated it could be — these requirements will have a wide-ranging and profound impact on the insurance industry throughout Europe.
GC Securities, a Division of MMC Securities Corp., Announces Completion of 144A Catastrophe Bond – Calypso Capital Limited
Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist, and GC Securities, today announced the completion of EUR275 million Class A Principal At-Risk Variable Rate Notes due January 10, 2014 (”Series 2010-1 Notes”) from a newly created 144A catastrophe bond program, Calypso Capital Limited (Calypso). Calypso is an Irish special purpose company created to provide protection to AXA Global P&C (”AXA”). The Series 2010-1 Notes issuance, the largest Euro denominated issuance in the history of the catastrophe bond market, will provide protection against European windstorm events.
On April 15th, 2010, the European Commission (EC) published its draft technical specifications for the next Quantitative Impact Study (QIS) 5, which will be implemented from August to November of 2010. Based on empirical evidence, the general calibration of the standard formula solvency capital requirement (SCR) may fall between the calibration of QIS 4 and the calibration seen in the rigid proposals of the various consultation papers (CP) submitted during 2009. This article takes a deeper look at the calibration of non-life underwriting risk as part of the overall SCR calculation.
The largest aggregate exposure in Japan is now found in Zone 6, with the traditional peak (Zone 5) not far behind. Growth continues to be experienced in other zones, particularly Zone 8 and Zone 11.
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Swiss Re and Munich Re, which are responsible for Catastrophe Risk Evaluating and Standardising Target Accumulations (CRESTA1) boundaries, have recently made some major updates to the zones in a number of countries. In the Asia-Pacific region, the CRESTA boundaries for Australia, China, Japan, and New Zealand have undergone significant changes.