ILS Newsletter June 2014


NEWS 13 Schultz says that more of the same is to be


expected and an increase isn’t likely. “We don’t see many dangers in the global or


macroeconomic factors, such as interest rates globally changing significantly, and we don’t see our market changing significantly upward either. It’s either flat or still trending down.”


However, Schultz notes, investor appetite does vary between different perils, with US


“Pullquote Pullquote Pullquote Pullquote Pullquote Pullquote Pullquote Pullquote Pullquote Pullquote”


TABLE 1: RETURNS FOR AON BENFIELD ILS INDICES Index title


Return for monthly period Aon Benfield ILS Indices


All Bond Bloomberg Ticker (AONCILS)


BB-rated Bond Bloomberg Ticker (AONCBB)


US Hurricane Bond Bloomberg Ticker (AONCUSHU)


US Earthquake Bond Bloomberg Ticker (AONCUSEQ)


2013


Return for quarterly period


2014 2013 2014


Return for year to date


2013


hurricane still largely the preferred option. “The greatest demand in the market is for


US hurricane bonds, so there tends to be a larger margin associated with this peril. US earthquake is second, but when you move out of these peak risks and into non-peak peril risks you’re going to see lower returns because there’s not as much demand,” he says.


Return for annual period


Ended Apr 30 Ended Apr 30 Ended Apr 30 Ended Apr 30 2014


2014


5-year average


annual return


0.83% 1.19% 1.51% 3.34% 2.46% 4.36% 8.85% 13.69% 0.37% 0.70% 0.97% 2.30% 1.62% 2.96% 5.71% 9.93% 0.60% 1.22% 1.08% 3.22% 1.89% 3.54% 9.86% 14.80% 0.33% 1.18% 0.88% 2.53% 1.32% 3.59% 4.50% 8.33% 9.75% 8.11% 11.05% 6.39%


10-year average


annual return


2013 2009–2014 2004–2014 8.39% 6.89 9.4 6


ECENT CATASTROPHE BOND AND ILS TRANSACTIONS Risk


Issuing vehicle


Alamo Re (Series 2014-1)


Size


Advisors


$300m Structuring & bookrunners: GC modelling: AIR


$28m Undisclosed


truturing & bookrunners: G apital Markets; c elling:


June 2014


June 2014


www.intelligentinsurer.com


PAGE 8


THE PICK fund-of-funds


OF THE BUNCH ILS Advisers launches the first


ALSO INSIDE: 2


NEWS: JLT INVESTS, GENERALI BOND, DODEKA IV AND MORE…


6


A VIEW FROM BOTH SIDES: THE CAT BOND MARKET


10


ILS SYSTEMS: A MATTER OF SURVIVAL


12


INVESTOR DEMAND CONTINUES TO OUTSTRIP NEW ISSUANCE


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