BRAVE Partners LLP

Arthur Christmas Predicting is a dangerous game. Making Predictions in writing is an even more dangerous game, but this is BRAVE Partners – so here are the firm’s bold statements about the alternative energy industry in 2012. Stay with Solvency II Predicting is a dangerous game. Making Predictions in writing is an even more dangerous game, but this is BRAVE Partners – so here are the firm’s bold statements about the insurance industry in 2012. Empty NESTs Predicting is a dangerous game. Making Predictions in writing is an even more dangerous game, but this is BRAVE Partners – so here are the firm’s bold statements about pensions in 2012. Future Shock Predicting is a dangerous game. Reviewing previous predictions is an even more dangerous game. Before making predictions for 2012, BRAVE Partners reviews its 2011 predictions for the insurance industry, energy industry and pensions. Insurance: No, Mr Bond, I expect you to die Despite the somewhat uninformed press on the issue – usually under the title 'death bonds' and adorned with fat-cat grim reapers – the reality is that extreme mortality is both a useful hedge for life insurers, reducing their capital and thereby the cost of the product, and a highly suitable investment for pension funds. BRAVE Partners is pleased to be developing the market. Insurance: Credit where credit is due BRAVE Partners looks at the November announcement from the NAIC of changes to the collateral requirements for non admitted insurers. Alternative energy finance: The Thrilla from Cuadrilla BRAVE Partners describes its energy business as 'alternative energy'. This is to reflect the fact that we seek to work with businesses that are not the major companies in the energy sector. It seems as if the firm has hit on the zeitgeist in the industry. Whilst often controversial (and BRAVE Partners does not shy away from controversy) 'alternative hydrocarbons' seem to be a theme. Alternative energy finance: Sectioned Following a visit to his old University, Imperial College – BRAVE partner, Chris Cloke-Browne has a different view of carbon capture and storage (CCS). Moreover, he has some ideas as to how it relates to another pet topic at the firm – Section 29 collateral for North Sea decommissioning. Alternative energy finance: The cold war. As energy prices in Europe soar with the approaching winter and trigger a political storm, BRAVE Partners looks at the factors driving this. The bottom line is that Europe needs energy independence and that requires investment in both new energy sources and in the infrastructure to diversify supply away from Russia.

Blown away: gales wreck wind turbines as Scottish storm wreck havoc. (The Telegraph, December 9, 2011) UK insurers given chance to early adopt Solvency II. (Insurance Insider, December 8, 2011) Renewable power trumps fossils for first time as UN talks stall. (Bloomberg, November 25, 2011) Reinsurers face up to $4.5bn Japanese Thai flood bill. (Insurance Insider, November 26, 2011) MS&AD and Tokio Marine forecast combined $3bn loss on Thailand (Insurance Insider, November 18, 2011) Lloyd's pushes for ICA use in 2013. (Insurance Day, November 9, 2011) Admiral takes a second day of stock market pain. (Insurance Insider, November 10, 2011) Anadarko in $4bn Macondo settlement with BP. (Insurance Insider, October 17, 2011) QBE is final Lloyd's Solvency II green light. (Insurance Insider, October 11, 2011) New Zealand oil ship leak 'raises questions'. (BBC, October 9, 2011) Golden age of run-off over, survey finds. (Insurance Insider, October 6, 2011)