The banking report—capital raising
and we just need to find a way to grow more quickly than we have done. “Aside from equity, you can also consider whether debt capital is an
attractive option and, personally, I think credit spreads are attractive at the moment. Then you can consider other options, either in reinsurance form or risk transfer form in the capital markets.
“In regards to risk transfer specifically, we think that the second half of
2011 could be a very attractive time to issue catastrophe bonds. We believe that there is a good amount of investor capacity available and that there will be several clients that will be taking advantage of that opportunity. So we believe that the second half of this year could be a very active time for cat bonds.”
Moving the focus to insurers, Peter Mason, head of UK insurance debt capital markets at Barclays Capital, points out that the regulatory
TOP OF THE CHARTS
Analysts at investment banking platform Dealogic have ranked investment banks in terms of their book runner rankings in the debt capital markets, catastrophe bond markets and the equity capital markets. The results are revealed below.
DCM BOOKRUNNER RANKINGS INSURANCE INDUSTRY—BY YTD 2011 YTD
Rank 1
2 3 4 5 6 7 8 9
10
Bookrunner parents Goldman Sachs
JPMorgan
Bank of America Merrill Lynch Deutsche Bank Barclays Capital UBS Citi
Morgan Stanley Credit Suisse BNP Paribas Total
Deal value $m (Proceeds)
5,009 4,465 4,001 3,866 3,341 3,294 2,695 2,155 1,764 1,648
44,776
No. 22
23 24 23 12 21 13 17 12 8
103 2010 YTD
% share Rank 11.2
10.0 8.9 8.6 7.5 7.4 6.0 4.8 3.9 3.7
100.0
CAT BOND BOOKRUNNER RANKINGS INSURANCE INDUSTRY—BY YTD 2011 YTD
Rank 1
1 1
Bookrunner parents Goldman Sachs
Deutsche Bank Citi
Total
Deal value $m (Proceeds)
158 158 158 690
No. 2
2 2 4
ECM BOOKRUNNER RANKINGS INSURANCE INDUSTRY—BY YTD 2011 YTD Rank 1 2 3 4 5 6 7 8 9
Bookrunner
Goldman Sachs Citi
Credit Suisse
Morgan Stanley JPMorgan
Deutsche Bank UBS
Bank of America Merrill Lynch Macquarie Group
10 10
Wells Fargo Securities Barclays Capital Total
Deal value $m 7,230 4,838 3,456 2,118 1,587 1,531 1,182 1,131 981 791 791
28,206
No. 7 4 5 5 4 3 3 3 2 1 1
29
1 2 3 4 5 6 7 8 9
10
Bookrunner parents JPMorgan
Bank of America Merrill Lynch UBS
Deutsche Bank Goldman Sachs
RBC Capital Markets Citi
BMO Capital Markets Barclays Capital Credit Suisse Total
2010 YTD
% share Rank 23.0
23.0 23.0
100.0
1 2 3
Bookrunner parents Goldman Sachs
Aon Benfield Securities
Swiss Re Capital Markets Corp Total
2010 YTD
% share Rank 25.6 17.2 12.3 7.5 5.6 5.4 4.2 4.0 3.5 2.8 2.8
1 2 3 4 5 6 7 8 9
10 100.0 Bookrunner Goldman Sachs
Bank of America Merrill Lynch Nomura Mizuho
Credit Suisse Barclays Capital
RBC Capital Markets Morgan Stanley JPMorgan
Deutsche Bank Total
Deal value $m 5,841 5,568 3,465 3,444 2,043 1,790 1,733 1,694 1,569 1,535
36,193
No. 10 9 2 1 7 2 2 5 5 3
40
% share 16.1 15.4 9.6 9.5 5.6 5.0 4.8 4.7 4.3 4.2
100.0
Deal value $m (Proceeds)
550 445 75
1,070
No. 8
9 2
10
% share 51.4
41.6 7.0
100.0
Deal value $m (Proceeds)
10,777 3,901 3,202 3,079 2,546 1,860 1,702 1,679 1,511 1,449
42,445
No. 30
24 14 20 19 12 12 10 11 12
102
% share 25.4
9.2 7.5 7.3 6.0 4.4 4.0 4.0 3.6 3.4
100.0
upheaval facing insurers is going to have an effect on how insurers and reinsurers raise capital in the future.
“Ultimately, everything in the financial space is being driven by
regulatory change right now,” he says. “In the insurance space, there are the regulatory changes around
Solvency II, and while we know what the Tier Two Capital rules look like, the rules for Tier One Capital are yet to be finalised. However, we know that these rules will be laid down in the next 12 to 18 months and thereafter there will be further issuance of Tier One capital once those rules are known.”
All of these issues mean that it is more important than ever for insurers
and reinsurers to know that the advice that they receive from their partners within the banking industry is as good as it gets.
36 | INTELLIGENT INSURER | September 2011
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