Posts Tagged ‘indemnity trigger’



February 19th, 2015

Catastrophe Bond Indemnity Trigger in 2014

Posted at 1:00 AM ET

Eighty-one percent of the property and casualty (P&C) risk capital (based only on 144A cat bond transactions) was structured with an indemnity trigger on either a per-occurrence, annual aggregate or multi-year aggregate basis. The use of indemnity triggers increased steadily from a low of 30 percent in 2011 to 55 percent in 2013.

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February 3rd, 2015

2014 Catastrophe Bond Activity Ends on Record Note with More Innovative Bonds Expected in 2015, According to GC Securities* Report

Posted at 11:30 PM ET

GC 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 the record catastrophe bond activity for 2014 and expectations for the market in 2015.

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May 19th, 2011

GC Securities* Catastrophe Bond Market Update: First Quarter 2011; Dynamics and Outlook

Posted at 1:01 AM ET

First Quarter Market Dynamics and Outlook for the Balance of 2011

First quarter market dynamics were altered by the Tohoku earthquake on March 11 particularly in combination with other first quarter losses emanating from flooding and Cyclone Yasi in Australia and the (second) Christchurch which occurred on February 21. Additionally, though to a lesser but still relevant degree, RMS’ release of its latest North American hurricane model, RiskLink v11, on February 28, also influenced market opinion on general valuation levels.

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November 29th, 2010

Catastrophe Bond Update: Third Quarter 2010 – Activity (and Great Expectations) Persists, Part III: Market Dynamics

Posted at 1:00 AM ET

GC Securities, a division of MMC Securities Corp.*

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Third Quarter Market Dynamics

Spreads generally tightened during the third quarter, particularly after the mid-point of the U.S. hurricane season. Concerns over U.S. hurricane concentrations abated, while maturities and net new inflows continued. To date, the 2010 hurricane season, though quite active in terms of storm formation, has not produced land-falling storms causing significant insured losses within the United States. There is now a renewed focus on the fact that 40 percent of the existing catastrophe bond issuance will mature by the end of June of 2011. Notwithstanding this maturity schedule, catastrophe bond market participants are eager to demonstrate growth and sustained issuance throughout the reinsurance pricing cycle and are therefore eager to see additional new issuance. In the absence of a certain visible pipeline (though much market chatter about fourth and first quarter transactions persists) in the current secondary market cat bond buyers are generally outstripping sellers, prompting prices of existing bonds to appreciate.

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May 21st, 2010

GC Securities, a Division of MMC Securities Corp., Announces Completion of 144A Catastrophe Bond – EOS Wind Limited

Posted at 1:00 AM ET

gc-securities-logoThis catastrophe bond transaction provides per-occurrence PCS Index Protection for U.S. hurricane and per-occurrence Paradex Protection for European windstorms.

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May 11th, 2010

GC Securities, a Division of MMC Securities Corp., Announces Completion of 144A Catastrophe Bond – Johnston Re Ltd.

Posted at 1:00 PM ET

gc-securities-logoGuy Carpenter & Company, LLC, the leading global risk and reinsurance specialist, and GC Securities, today announced the completion of a USD305 million, two-class note issuance from a new 144A catastrophe bond program, Johnston Re Ltd., a Cayman Islands exempted company licensed as a Class B insurer, to benefit the North Carolina Joint Underwriting Association and the North Carolina Insurance Underwriting Association (collectively the NC JUA/IUA).

This program continues on the success of the 2009 transaction, Parkton Re, and provides the NC JUA/IUA a combined USD505 million in catastrophe bond protection to manage its hurricane risk for the 2010 hurricane season.

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July 27th, 2009

Cat Bond Update: Second Quarter 2009

Posted at 1:00 AM ET

gc-securities-logoGC Securities, a division of MMC Securities Corp.*
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The catastrophe bond market continues to advance, though issuances are down from 2008. The activity represents a positive rally from the hiatus during the second half of 2008. For the first half of 2009, nine bonds have been issued, with aggregate risk capital of USD1.38 billion. The continuing stabilization of financial markets and a decrease in catastrophe bond spreads, however, could result in more issuance activity in the second half of the year, particularly for sponsors which had considered issuances in the first and second quarters but deferred their plans because catastrophe bond spreads were considered to be too wide (i.e., catastrophe bond protection was considered to be too expensive).

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July 27th, 2009

Chart: 2Q2009 Issuance by Trigger Type

Posted at 12:55 AM ET

2q2009catbondtriggertype

Indemnity-triggered bonds accounted for USD250 million (31 percent) of issuances. Modeled Loss triggers were next at USD180 million (22 percent), with Weighted-PCS index triggers following at USD150 million (19 percent). Multiple Trigger transactions (Multi-peril transactions utilizing different triggers for each covered peril) reached USD127.6 million (16 percent), and USD100 million (12 percent) came from a Modified Industry Trigger Transaction- (MITT-) triggered bond.

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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/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., which is authorized and regulated by the Financial Services Authority. 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.

April 13th, 2009

Cat Bond Update: First Quarter 2009

Posted at 1:00 AM ET

gc-securities-logoGC Securities, a division of MMC Securities Corp.*
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A strong first quarter has demonstrated that catastrophe bonds are still important tools for risk managers, treasurers, and CFOs. After five months of silence since the last issuance in mid-August 2008, three bonds closed in the first quarter of 2009 bringing USD575 million in fresh capital and confirmation that these instruments are still attractive investments, despite the ongoing the global financial catastrophe. Investor marketing for a fourth catastrophe bond issuance began in the first quarter but is expected close in the early part of the second quarter. Issuance levels are consistent with the first quarter of 2008, a year that seemed likely to be the second-busiest in the history of the catastrophe bond market until the financial crisis accelerated in the fourth quarter of last year.

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