BRAVE Partners LLP: Insurance finance and capital commentary

Claim baby claim.
The insurance industry is notorious for collecting premiums and not paying claims. Current court action suggests that Lloyds is seeking to prevent claims from a (possibly uninsured) BP leaking into the Transocean insurance covered by that market.

Storming.
June 1 brings the opening of hurricane season. Predictions suggest an active season. The oil spill in the GOM increases the risks. Reinsurers will be watching the weather channel carefully.

Insurance linked securities: Avalon Pray.
Avalon Re was the first (and currently only) cat bond to transfer liability risk. Events in the GOM bring the risk assessment on that bond into sharp focus. BRAVE Partners believes that it is time to rethink capital markets solutions.

Aligators don't pay taxes.
The Florida Hurricane Catastrophe Fund (FHCF) has just issued a $693m. The FHCF is ultimately used to drive down the price of insurance in Florida. It also drives much more in the (re)insurance markets.

June 2010
My name is Bond.
BRAVE Partners thought that the $3bn cost estimates for the Deepwater event were low. now BP was established an uncapped $20bn the firm seems justified. The losses, however, do not stop here, it extends to Chevron and others. BRAVE Parnters looks to a cat bond solution.
Insurance: Weather risk.
Weather derivatives have been around for a long time. It seems, to BRAVE Partners, that the time has come for this market to emerge.

July 2010
Who dares.
Who dares who wins has been the motto of nine elite armed forces around the world. BRAVE Partners believes that a financial risks specialty insurer with a similar view is set to win in the current market.

BRAVE Partners LLP