Praying for a catastrophe
The logic of plugging together two industries - insurance and capital markets - is irrefutable and inevitable. But pricing insurance risk and selling it to investors is a painful process, frustrated by a glut of insurers selling their cover too cheaply. The visionaries are positioning themselves for a change in circumstances that could be swift and merciless, like the perils they're trying to insure. By David Shirreff.
Cat bond prices are quoted on Bloomberg by Swiss Re New Markets |
Current Indicative Prices and Yields December 31 1998 12:01 |
January 4th, 1999 |
These levels are INDICATIVE ONLY, please call for live quotes. Mike Angerame (212) 317-5570 |
|
Price |
Yld over benchmark |
Underlying risk |
*SR Earthquake Class "B" |
100 8/32-101 |
(5.60-4.20%) |
CA Earthquake |
*SR Earthquake Class "C" |
100 25/32-101 2/32 |
(6.15-5.55%) |
CA Earthquake |
*Parametric Re |
101 5/32-101 24/32 |
(2.00-0.85%) |
US Total Cover |
Mosaic Re |
101 5/32-101 24/32 |
(2.00-0.85%) |
US total cover |
Residential Re |
101 9/32-101 18/32 |
(0.90-0.20%) |
Florida Wind |
Trinity 1999 |
99 17/32-100 20/32 |
(4.65-3.50%) |
Florida Wind |
Pacific Re |
**Call for current quote** |
|
Japan Wind |
* Denotes Private Placements by Swiss Re Capital Markets, Please call for |
Copyright 1998 BLOOMBERG L.P. | |