Munich Re sells the ultimate risk
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| "We are considering longevity derivatives and branching out into other insurance asset classes" |
WHEN THE WORLD’S largest interdealer broker plunges into a new financial market, it’s a reasonable bet that it is one set for substantial growth. In February 2007, Icap, which boasts a daily transaction volume of more than $1.5 trillion in interest rate, credit, energy, foreign exchange and equity derivatives markets, established a joint venture with insurance broker Jardine Lloyd Thompson to operate in the markets where insurance, financial derivatives and securities are converging. Setting up operations took time and it wasn’t until late last year that it completed its first deal, an over-the-counter catastrophe swap on North American windstorm risk of undisclosed size between two unnamed counterparties. Since then, business has been brisk, Michael Spencer, chief executive of Icap, tells Euromoney. "Icap-JLT began broking its first catastrophe derivatives in December 2007, and has since brokered a number of both wind and quake swaps."
