Posts Tagged ‘Lloyd’s’



May 14th, 2014

Review of GC Securities* Deals

Posted at 1:00 AM ET

Here we review recent deals of GC Securities* from the past six months and featured on GC Capital Ideas:

GC Securities* Completes 144A Indemnity Triggered Europe Windstorm Catastrophe Bond for Assicurazioni Generali S.p.A. : GC Securities, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/NFA/SIPC, today announced the placement of Principal At-Risk Variable Rate Notes, with notional principal at €190,000,000, through a newly formed special purpose reinsurance vehicle domiciled in Ireland, Lion I Re Limited, to benefit Assicurazioni Generali S.p.A., an Italian insurance company and the parent company of the Generali Group. This is the first time that Assicurazioni Generali S.p.A. has utilized the cat bond market and is the first ever 144A cat bond to provide indemnity protection against Europe windstorm risks. Additionally, it is the first Italian sponsored catastrophe bond.

Read the article>>

 

GC Securities* Completes Catastrophe Bond Queen Street IX Re Limited for Munich Re: GC Securities, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/NFA/SIPC, today announced the placement of the Principal At-Risk Notes, with notional principal of $100,000,000, through a newly formed catastrophe bond, Queen Street IX Re Limited, to benefit Munich Re. This is the ninth Queen Street cat bond to benefit Munich Re, the eighth overall cat bond issuance benefitting Munich Re since 2011 and the first cat bond issuance benefitting Munich Re provided via an Irish special purpose reinsurance vehicle.

Read the article>>

 

GC Securities* Acts as Sole Financial Advisor on the Second Largest Ever M&A Transaction in the Lloyd’s Market: GC Securities* is acting as sole financial advisor to the shareholders of Canopius Group Limited (”Canopius”) in the sale of Canopius to NKSJ Holdings, through its insurance subsidiary Sompo Japan Insurance Inc. The sale agreement was signed on December 18, 2013 and the transaction is expected to close in the second quarter of 2014, subject to regulatory approval.  Upon closure this will be the second largest ever M&A transaction in the Lloyd’s market.

Read the article>>

*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.

 

Click here to register to receive e-mail updates

December 20th, 2013

GC Securities* Acts as Sole Financial Advisor on the Second Largest Ever M&A Transaction in the Lloyd’s Market

Posted at 8:19 AM ET

GC Securities* is acting as sole financial advisor to the shareholders of Canopius Group Limited (”Canopius”) in the sale of Canopius to NKSJ Holdings, through its insurance subsidiary Sompo Japan Insurance Inc.

Continue reading…

October 16th, 2013

Capital Stewardship Option: M&A - Grow/Diversify by Territory

Posted at 1:00 AM ET

With growth opportunities limited in mature markets, many insurers are looking to emerging markets for future expansion, in particular China, Southeast Asia and Central and Latin America. Figure F-10 highlights gross written premium (GWP) growth in emerging markets compared to developed markets from a 2003 base.

Continue reading…

March 7th, 2013

BRIC Countries

Posted at 1:00 AM ET

Here we bring together recent GC Capital Ideas’ posts that have focused on the BRIC (Brazil, Russia, India and China) countries. 

Increased Flood Loss Potential:  Making use of all available tools and practicing comprehensive exposure management will both strengthen (re)insurers’ ERM practices and allow them to make informed risk management and reinsurance decisions as they enter new markets. Certainly, flood risk is prevalent and increasing in almost every developing economy.

Read the article >>

 

Lloyd’s: What Will Success Look Like?  If Lloyd’s is successful in achieving the growth and diversification outlined in its near-term and long-term strategic plans, it can expect to capitalize on business opportunities in emerging market economies such as the BRIC countries (Brazil, Russia, India and China). Growth, however, will not necessarily be limited to these markets. Other countries in Southeast Asia, Eastern Europe and Latin America are experiencing strong growth and increasing insurance penetration, and these territories also present attractive opportunities for Lloyd’s.

Read the article >>

 

Growth Potential in Developing Markets:  Positive premium growth trends in developing markets are expected to be sustained over the next decade. During this time, emerging markets are expected to drive global economic growth, and foreign direct investment in these emerging regions is likely to increase. In Brazil alone, investment in infrastructure is expected to amount to USD550 billion over the next few years as the country prepares to host the soccer World Cup in 2014 and the summer Olympics in 2016. China and India too are expected to continue to see robust growth in the next ten years.

Read the article >>

 

State of the Reinsurance Market, Part II: Inflation/Deflation Expectations, Investment Returns:  Expansionary monetary policy has fueled concerns that inflation could increase in the medium term, but the picture is less clear in the near term. While consumer price indices in Brazil, Russia, India and China (BRIC), the United States and the rest of the G7 currently exhibit positive trends, consensus forecasts show borderline disinflationary trends in the nearer term in the United States and many developed markets.

Read the article >>

 

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

September 21st, 2012

Lloyd’s: Syndicate Ratings/Assessments

Posted at 1:00 AM ET

Matthew Day, Senior Vice President
Contact

The Market ratings remain the principal measure of financial strength to be applied to operations underwriting at Lloyd’s, but several rating agencies separately provide syndicate-specific analysis. These analyses can support the reinsurance-buying decision-making process, but it is dangerous to rely on them without understanding the varying underlying methodologies. (None of these products are endorsed by Lloyd’s.)

Continue reading…

September 20th, 2012

Lloyd’s: Market Ratings

Posted at 1:00 AM ET

Matthew Day, Senior Vice President
Contact

The financial strength ratings assigned to Lloyd’s by S&P, A.M. Best and Fitch have been relatively stable in the 15 years since the first rating was assigned. During this period, the (re)insurance industry and Lloyd’s itself have undergone dramatic change as they responded to the major challenges of the September 11, 2001, terrorist attacks, devastating US and Gulf of Mexico hurricanes and other natural catastrophes that occurred across the globe. The softening casualty insurance market and the global financial crisis also caused difficulties during this time. The current Lloyd’s ratings assigned by each rating agency are at their original levels - a significant achievement given that most of Lloyd’s peers have failed to recover their pre-2001 ratings.

Continue reading…

September 19th, 2012

Lloyd’s: 2012 Capacity and Future Trends

Posted at 1:00 AM ET

Matthew Day, Senior Vice President
Contact

Lloyd’s capacity is an estimated GBP24.0 billion at the start of 2012, showing continued growth. Lloyd’s capacity grew from GBP15.7 billion to GBP23.3 billion between 2007 and 2011, an increase of 48 percent. GWP in that time increased 43 percent to GBP23.5 billion.

 

Continue reading…

September 18th, 2012

Lloyd’s: Solvency Testing

Posted at 1:00 AM ET

Matthew Day, Senior Vice President
Contact

Lloyd’s has a well-developed risk management framework. A number of committees provide oversight for the Market and detail what is required of members in terms of their own risk management. Lloyd’s is required to conduct an ICA for the Market as a whole, using the normal FSA risk categories to examine risks that are not captured within syndicate ICAs. This process aims to determine the level of capital required to be held centrally that can withstand a 1-in-200 year event over a one-year time frame. The Lloyd’s ICA is an important driver for the Council in determining the optimum level of central assets. Another key driver is the expectation that the costs of mutuality will be less than 1 percent of members’ GWP across the insurance cycle. The central assets target and the level of contributions are regularly reviewed in light of the Market’s current financial position and forecasted needs.

Continue reading…

September 17th, 2012

Capital Development at Lloyd’s

Posted at 1:00 AM ET

Matthew Day, Senior Vice President
Contact

The chain of security at Lloyd’s describes the three layers of capital that Lloyd’s uses to pay claims.

Continue reading…

September 14th, 2012

Lloyd’s Operating Performance: Part II

Posted at 1:00 AM ET

Matthew Day, Senior Vice President
Contact

Investment Performance

Although the 2011 investment return of 1.9 percent was weak relative to previous years, Lloyd’s conservative investment strategy has partially insulated it from some of the more damaging volatility seen across a number of markets since the onset of the financial crisis in 2008 and continuing through 2011.

Continue reading…