Here are the most recent CAT-i stories covering January through June of 2015.
Posts Tagged ‘Property’
Guy Carpenter today announced the appointment of Tim Gardner as CEO of U.S. Operations effective August 1, 2015. Mr. Gardner will be a member of the Guy Carpenter Board of Managers and he will be based in New York.
In a promising sign for the 144A P&C catastrophe bond market, one new issuer successfully obtained capital markets protection during the first quarter. Safepoint Insurance Company, seeking to establish long-term relationships with alternative capital providers, issued USD100 million of Principal At-Risk Variable Rate Notes via a newly established catastrophe bond shelf program, Manatee Re Ltd. Series 2015-1. As the deal upsized from USD75 million, the insurance-linked securities investor base accommodated the growing Florida insurer, clearly demonstrating investors’ willingness to assume risk from start-up and/or growing insurance companies seeking protection in 144A bond format.
Six repeat sponsors re-entered the market in the three months ending March 31, each issuing either replacement coverage or additional limit in advance of the North Atlantic wind season. Many of the repeat sponsors sought to continue to take advantage of attractive pricing as demonstrated by Catlin’s Galileo Re Ltd. Series 2015-1 Notes. This particular transaction was Catlin’s second catastrophe bond issuance through the Galileo Re Ltd. catastrophe bond facility and fifth overall 144A catastrophe bond issuance, with the 2015-1 tranche sitting below the outstanding Series 2013-1 layer. The 2015-1 Notes demonstrate that investors continue to show an interest in high risk/higher yielding products as the initial risk interest spread on the Galileo Re Series 2015-1 Notes is 13.50 percent with a modeled annual expected loss of 8.60 percent on a sensitivity basis - based on AIR risk analysis.
Chart presents the 144A P&C catastrophe bond issuance from 1998 through the first quarter of 2015. The first quarter is particularly active in terms of issuance for the P&C cat bond market and this characteristic continued into 2015 as USD1.49 billion of 144A P&C cat bond limit was successfully placed with investors, the highest first quarter volume in history.
Guy Carpenter today released a briefing on the 2015 Atlantic hurricane season. According to the report, hurricane activity for the Atlantic Basin is projected to be below average for the 2015 season although impactful landfalls can occur in any hurricane season, even those of reduced activity.
Here we review the evolving role of reinsurance in mitigating public sector risk through the expanding deployment of reinsurance and capital market solutions:
Guillermo Franco, Head of Catastrophe Risk Research - EMEA
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.
Tropical Storm Bill made landfall at about 11:45 CDT (16:45 UTC) yesterday on Matagorda Island, Texas, according to the National Hurricane Center (NHC). Maximum sustained winds at landfall were 60 mph according to the NHC. Bill inflicted storm force winds, a storm surge of at least three feet and heavy rainfall to an area still saturated from the excessive rains of last month.