David Priebe, Vice Chairman, Guy Carpenter, comments on the direct impact the new capital is having on reinsurance pricing. “The impact of the new capital has been most dramatic in the US during 2013. For the first time, the ILS market offered prices comparable to or lower than those of the established reinsurers, ending the general stability and consensus of post-Katrina catastrophe pricing, especially in Florida. Strong appetite tightened spreads for US hurricane catastrophe bonds forcing the traditional reinsurers to react by cutting Florida risk-adjusted renewal prices by around 15 percent at the June 1 renewal. It was a tipping point for the reinsurance industry.”
Posts Tagged ‘David Priebe’
In its sixth annual press briefing held at the Reinsurance Rendez-Vous 2013 in Monte Carlo, Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and member of Marsh & McLennan Companies (NYSE: MMC), considered the impact of new capacity on current market conditions and explored where the opportunities exist for profitable growth in such an environment.
GC Securities, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/SIPC, today announced the placement of the Principal At-Risk Notes, with notional principal of $75,000,000, through a newly formed catastrophe bond, Queen Street Re VIII Limited, to benefit Munich Re. This is the eighth Queen Street cat bond to benefit Munich Re and the seventh overall cat bond issuance benefitting Munich Re since 2011.
GC Securities, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/SIPC, today announced the placement of the Series 2013-1 Notes, with notional principal of $175,000,000, through a newly formed catastrophe bond shelf program, Blue Danube II Ltd., to benefit Allianz. This is the second time that Allianz has accessed PCS-MITT triggered cat bond protection and the eighth overall cat bond issuance benefitting Allianz since 2007.
GC Securities, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/SIPC, today announced the placement of the Series 2013-1 Notes, with notional principal of $300,000,000, through an existing catastrophe bond shelf program, Long Point Re III Ltd., to benefit Travelers. This is the second time that Travelers has accessed indemnity-triggered, fully collateralized reinsurance protection from the catastrophe bond market.
Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist, today announced that Stephen C. Mathews has been appointed Managing Director of GC Securities*, effective immediately. Mr. Mathews is based in New York and reports to Chris Ezbiansky, Head of M&A Advisory - Americas.
GC Securities, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/SIPC, today announced the placement of the Series 2013-1 Notes, with notional principal at $500,000,000, through a newly formed catastrophe bond shelf program, Tar Heel Re Ltd., to benefit the North Carolina Joint Underwriting Association and the North Carolina Insurance Underwriting Association (collectively, the NCJUA/NCIUA). This is the fourth time that the NCJUA/NCIUA has utilized the cat bond market to manage its tropical cyclone risks and the first time that an annual aggregate structure was utilized.
Here we present recent GC Capital Ideas stories that have discussed the concept of the convergence of traditional and non-traditional sources of capital.
January 1, 2013 Renewals Bring Stable Reinsurance Pricing: Guy Carpenter reports that the reinsurance sector enters 2013 equipped with ample dedicated capital and stable pricing. In its 2013 global renewal report, The Route to Profitable Growth, Guy Carpenter finds that the January 1, 2013 renewals took place against a stable backdrop, with only loss-affected lines and select regions experiencing price volatility. The market was supported by a combination of factors including lower than normal catastrophe losses during the first nine months of 2012, new reinsurance capacity and record-high levels of capital.
GC Videocast - Rendez-Vous Press Briefing 2012 (David Priebe) Capital Markets Expansion: David Priebe, Vice Chairman, Guy Carpenter, comments on the continuing expansion of the capital markets in the reinsurance arena. He said: “We have been talking for a long time about the convergence of the capital markets. But I believe the reinsurance market has come of age and that the old distinction of traditional and non-traditional sources of capital is redundant. The market has converged.”
Guy Carpenter Explores Opportunities in a Challenging Market At Monte Carlo Rendez-Vous 2012: In its fifth annual press briefing held at the Reinsurance Rendez-Vous 2012 in Monte Carlo, Guy Carpenter & Company addressed the challenging market conditions currently facing the re/insurance industry and highlighted opportunities for growth.
Catastrophe Bonds: 2011 Review - Market Dynamics, Outlook: Though primary issuance is likely to be down relative to 2010, 2011 stands as one of the most active, innovative and robust years in the convergence market’s history. Catastrophe loss activity was significant. For the year, current estimates suggest as much as USD100 billion of global insured catastrophe related losses, making 2011 one of the costliest years on record. Notably, 70 percent of this total is associated with catastrophe events outside of the United States.
Guy Carpenter announced that Andrew Beecroft and Paul Rayner have been appointed as Managing Directors of GC Securities,* effective January 7, 2013.
Guy Carpenter and GC Securities have been named the winner of Insurance Day’s ILS Transaction of the Year, as part of the 2012 World Reinsurance Awards program. This recognition honors the Kibou Ltd. catastrophe bond program for its innovative structure and strategic execution.