Fitch Ratings has launched a global analytical working group to rate all forms of insurance-linked securities...
Fitch Ratings has set up a global analytical working group to rate all forms of insurance-linked securities, including catastrophe bonds, redundant reserves, disability income, catastrophic mortality and embedded value transactions.
The ILS market witnessed nearly $5.6bn of issuance in 2005 and $8.9bn in 2006, an increase of 59%. Going forward, Fitch expects volume in this sector to increase by approximately 30% in 2007.
Current Fitch analysts who will devote time to the ILS working group come from Fitch's offices in Chicago, New York, London, Paris, Singapore, Sydney and Brisbane.
“The creation of this group takes advantage of Fitch's multinational rating capabilities which is essential given the global nature of the ILS market,” said Donald Thorpe, a senior director at Fitch and head of the new global ILS group.
“The move also capitalises on the need for expertise in both the insurance and structured finance sectors to appropriately assess and monitor the complex risk characteristics of these transactions.”
