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. | |
