Hannover Re has underwritten the first ever capital markets transaction to cover facultative risks as part of its extended Insurance-Linked Securities (ILS) activities.
Attractive market conditions resulted in a record issuance of $1 billion catastrophe bonds in the first quarter of 2011 in comparison with a figure of $ 650 million last year.
Swiss Re has taken its level of protection via its Successor X catastrophe bond programme to $745 million with the placement of a $305 million in protection against North Atlantic hurricane and California earthquake risks.
When the financial crisis hit the future for the Insurance linked securities market viewed as troubled if not terminal. However the sector has bounced back and 2010 saw a bumper issuance.
All indicators are pointing to a good 2011 for Insurance Linked Securities (ILS), and that they will continue to be attractive to the broader investor market.
US healthcare underwriter Aetna has entered into a three-year reinsurance agreement with Vitality Re Limited as it seeks to free up capital for its core business.
The impact of the record losses in the first three months of the year quickly followed by the tornados in the southern United States is set to call a halt to the softening of the cycles according to underwriters Reinsurance’s Asian Correspondent Hafdiz Baharom reports
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