If you’re having problems viewing this message, please click here. September 2011, NEWSLETTER
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Business Risk Analysis - Visionary Execution
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Q4 not a bore
 
October brings us into Q4 and the scramble to close deals for year end. Over the last month key moments in our industries have been:
 
Insurance: Reinsurance rates are starting to stabilise the the market counts the losses, but without bigger losses a hard market is some way off.
 
Energy: Commodity prices continue to tumble, but overall the world remains short of power.
CURRENT PROJECTS
 
Surplus relief

BRAVE Partners is working on bringing non-traditional capacity to provide surplus relief for primary insurance business. The traditional markets feel tight.

Smallcap commodities
BRAVE Partners is working with an experienced investor in the field to bring outstanding opportunities in commodity stocks to investors. The firm sees the opportunity in listed, not private deals.
Oil spill insurance
BRAVE Partners is working with a highly experienced partner to transfer oil spill liability risk to new investor markets. The product brings much needed diversifcation to ILS markets.
Senior investor for a loan fund
BRAVE Partners is advising a loan fund on developing a senior investment product that is attractive to life insurers.
Solvency II: Growing concerns on loss absorption
 
A stand-off is developing between insurers and regulators over the grandfathering rules for some hybrid Tier 1 capital securities issued by insurers. Under the Solvency II rules, all Tier 1 capital must be able to absorb losses on a going concern basis. That is to say that the investors must be in a position where they take losses without being able to wind-up or liquidate the company. In many ways this is the fundamental difference between equity and debt that was perhaps missed in the go-go markets where innovative Tier 1 capital instruments first appeared for financial institutions.
 
Energy finance: Smoking out the taxman
 
There are more tax advantages than meet the eye in some renewable energy investments.


 
Insurance: Jelly for Virginia
 
Hurricane Irene grabbed the headlines, but savvy insurers know that the earthquake that struck Richmond Virginia was the true risk event.
 
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