Whether you have yet to invest in ILS, or are looking to diversify your portfolio and explore new products, the 7th Insurance Linked Securities Summit will ensure you make the right investment decisions by presenting a well-balanced perspective on the inherent risks and opportunities in the space, and the dynamic developments in technologies and tools so you can capitalize on this revolutionary asset class.
For more information, visit us at http://www.ilsnewyork.com
Business Principles, Tools, and Techniques in Participating in Various Types...
7th Insurance Linked Securities Summit
1. Register by 12/4 and
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7th
Insurance
Linked Securities
Summit
TM
January 27 – 29, 2010 New York City
Increasing Issuance, Enhancing Transparency &
Expanding the Investor Base for: Cat Bonds, Insurance
Linked Securities & Longevity-Based Investments
60+ industry leading speakers, including the following ILS leaders,
investors, and visionaries:
Jean-Luc Amer Ahmed, Commissioner John Seo, Luca Albertini, CEO,
Besson, Chief Chief Risk Officer, Gennett Purcell, Managing Leadenhall Capital
Risk Officer, Allianz DC Insurance Principal, Fermat Partners
SCOR Department Capital
Dr. Kerry Martin Bisping, Commissioner Elaine Caprio Dr. Kenneth Froot,
Emanuel, Head of Non-Life Pauletter Thabault, Brady, VP, Ceded André R. Jakurski
Professor of Risk Vermont Insurance Reinsurance Professor of Business
Atmospheric Transformation, Department Operations, Administration,
Science, MIT Swiss Re Liberty Mutual Harvard Business School
Brand New Content for 2010! The world’s only ILS
conference delivering:
Non-Life Track Life Track
• Sponsor perspectives on the role of • Attracting new capital sources by fusing
ILS within a comprehensive risk longevity with alternative asset
• Dedicated conference tracks for the
management strategy classes life and non-life sides of the ILS
fence, allowing you to maximize your
• Investor perspectives on the • Regulatory perspectives from the state learning opportunities throughout the
implications of conflicting catastrophe and federal level 3-day event
models • The role of longevity swaps in risk • Extended workshops and master
• Fund manager perspectives on ILS management strategies for pension funds classes on fund-raising, capital
portfolio construction & optimization • Cutting-edge biotech perspectives on formation, and new approaches to risk
• Academic perspectives on future longevity trends management
uncertainties in climate models • Hedging tools & fund-raising • More than 20 hours of extended
• New trigger structures, trading strategies for life settlement funds networking opportunities, ensuring
technologies, collateral you walk away with valuable new
• The role of securitization in the future
techniques, and fund-raising contacts from the industry
of the asset class
strategies
Sponsors Media Partners
1-800-882-8684 • www.ilsnewyork.com
2. A Special Thank
7th You to Our
Industry-Leading
Insurance Advisory Board
Linked Securities John Seo,
Managing Principal
Fermat Capital
Summit TM
David Rawson-Mackenzie
Dear Colleague, Fund Director
Centurion Fund Managers
Welcome to the 7th Insurance Linke
d Securities Summit – the largest
conference of the year for the entir and most important
e ILS value chain. Mike Fasano
President
Taking place in New York City from
January 27-29, 2010, the ILS Sum
mit is the only conference Fasano Associates
to deliver dedicated session tracks
to both the life and non-life sides
structure of the conference ensures of the community. The
that – whichever side of the fence
walk away with two full days’ wort you’re interested in – you Morton Lane
h of strategies and solutions on the
market, including… critical issues facing your Principal
Lane Financial LLC
(on the non-life side)
(on the life side) Luca Albertini
…following a brief hiatus in the glob
al ILS …there are still numerous headache CEO
market after the collapse of Lehm s relating
an Brothers to the life expectancy changes Leadenhall Capital Partners
in September 2008, the market has of 2008,
with many would-be investors still
rebounded in 2009 with (at time skeptical
of writing) about the values of life settlement
over $2 billion in new catastrophe portfolios Alex Krutov
bonds based on current LEs. At the same
issued and another $1 billion expe time, new Managing Director
cted before regulatory and tax law changes
the end of the year. The market has – at both Century Atlantic Capital
the state and federal level – have
responded vigorously to the collateral introduced
legal and administrative burdens whic
challenges exposed by the Lehmans h
debacle, participants are trying to solve in the Michael Stahel
with triparty repo structures and most
government-guaranteed solution
cost-effective way. Head of ILS
s finding Clariden Leu
their way into recent issuances.
But the market continues to innovate
and
expand, with new investment sour
With a long-term solution to the colla ces Karsten Bromann
teral emerging in Asia and Latin Ame
problem apparently (but not defin rica and Managing Partner & CRO
itely) in new longevity hedging strategies
sight, industry participants are now being Solidum Partners
focused explored for life settlement portfolios
on growing the ILS market in 2010 . The
. growth of the synthetics market prom
Improving transparency, securitiz ises
ing new exciting investment opportunities Michael Freedman
risks, increasing new issuance in 2010,
and and some fund managers have foun SVP, Governmental Affairs
expanding the investor base are d ways
the major to expand the investor community Coventry
challenges currently facing the indu by
stry – all of “fusing” policies with alternati
which will be explored in great dept ve asset
h at the classes to create hybrid investmen
7th Insurance Linked Securities Sum t products
mit. with distinct characteristics.
*** Who Will Attend:
“Excellent sessions and speakers. ■ 5% Pension Funds & Institutional
You and your team did a great job.”
Kathleen Faries, Vice President,
Market Solutions, Tokio Millenniu
Investors
m Re Ltd.
■ 36% Asset managers and hedge funds
More than 70 expert speakers will
contribute to the 7th ILS Summit,
most important agenda we’ve yet making it the deepest and ■ 21% Insurance & Reinsurance
delivered to the marketplace. Pleas
through the agenda, circling the sessi e take a few minutes to read Companies
ons and speakers that will help you
attend. make a business case to ■ 12% Banks
I look forward to meeting you in New
■ 8% Law Firms
York next January, at the “big one!
” ■ 10% Life Settlement Companies
Kind regards, ■ 4% LE Providers
■ 4% Modeling Agencies
Don’t miss brand-new
workshops on ILS fund-
Toby Donovan raising, life settlement risk
Program Director
ILS & Life Settlements Portfolio
management, and interpreting
cat models (see page 8 for
more details)!
2 1-800-882-8684 • www.ilsnewyork.com
3. What’s New at the 7th ILS Summit?
60+ outstanding ILS thought Keynote Highlights…
leaders including…
Climate Change and the Future of Hurricane Activity
Dr. Kerry Emanuel, Professor of Atmospheric Science, MIT
• Dr Kerry Emanuel, Professor of Atmospheric Science, MIT One of the interesting things about insurance-linked securities on the non-life side is
• Jean-Luc Besson, Chief Risk Officer, SCOR their correlation not to the financial markets but to insurance pay-out events:
• Martin Bisping, Head of Non-Life Risk Transformation, Swiss earthquakes, floods, and particularly hurricanes. In this much awaited keynote session,
Re Dr Emanuel – Professor of Atmospheric Science at MIT, and one of the world’s leading
• Amer Ahmed, Chief Risk Officer, Allianz authorities on the science of long-term hurricane forecasting – will present his
research on the likely effect of climate change on future hurricane activity,
• Commissioner Paulette Thabault, Commissioner, Vermont
and the implications for the global ILS market. A rare chance to hear from
Insurance Department
one of TIME magazine’s 100 most influential people in the world. See page 4
• Commissioner Gennett Purcell, Commissioner, DC Insurance for more details.
Department
• Dr. Kenneth Froot, André R. Jakurski Professor of Business
Administration, Harvard Business School Biotech Perspectives on Human Longevity Shifts
• John Seo, Managing Principal, Fermat Capital Bill Caldwell, CEO, Advanced Cell Technology
• Ivan Zelenko, Head of Derivatives and Structured Finance, On the life side, nothing has more power significantly to disrupt the long-term future of
World Bank Treasury the life settlements space than dramatic enhancements in human longevity. For the 7th
• Paul Schultz, President, Investment Banking, AON Benfield ILS Summit, we’re honored to welcome Bill Caldwell, CEO of one of the
• Michael Leybov, Managing Director, Horton Point world’s most innovative stem-cell biotech companies, Advanced Cell
Technology, who will offer a closer look at some of the emerging
• Elaine Caprio Brady, VP, Ceded Reinsurance Operations, technologies that offer a prospect (if not the promise) of dramatic human
Liberty Mutual
longevity enhancements within our lifetimes. See page 4 for more details
• Urs Ramseier, Head of ILS, Horizon 21 Alternative
Investments
• Dr Andreas Műller, Head of Origination, Distribution, “When Models Disagree…”
ILS Investments, Munich Re Investor Perspectives on Conflicting Catastrophe Models
• Aashh Parekh, Director, Global Public Markets, TIAA-CREF Dr. John Seo, Managing Principal, Fermat Capital
• Chase Toogood, CEO, Iris Re In recent years, one of the most controversial areas in the non-life space has been the
• Franz-Philippe Przybyl, CEO, Berlin Atlantic Capital apparent disagreement of catastrophe models, and (more specifically) what the
implications of these disagreements are for investors in cat bonds. Accusations of “model
• Vincent Prabis, ILS Fund Manager, Acheron Capital
shopping” – the idea that cat bond sponsors shop around for the catastrophe model
• Dr. Andreas Müller, Head of Origination, Distribution & ILS that is most favorable to their own issuance – have become widespread, despite
Investments, Munich Re assurances by sponsors to the contrary. In this keynote session, legendary cat bond
• Stephen Velotti, Chief Underwriting Officer, Juniperus Capital investor John Seo – one of the few fund managers to subscribe to all three
• David Rawson-Mackenzie, Fund Director, Centurion Fund major modeling agencies – will address the controversy head-on, explaining
Managers why the accusations are wrong and discussing some of the implications of the
• Dr Lenny Smith, Professor of Statistics, London School of discrepancies from an investment perspective. See page 6 for more details.
Economics
• Dr Pauline Barrieu, Reader in Statistics, London School of “Fusion” Life Settlement Products – a New Approach to Longevity
Economics Investments
• Morton Lane, Principal, Lane Financial LLC Matthew Browndorf, Founder & Chief Investment Officer, Browndorf
• Patti Guattari, Director, Swiss Re PEM
• Jose Garcia, CEO, Carlisle Fund Management Recent years have witnessed a number of strategies for broadening the investment base
• Beat Hess, Managing Partner, AA Partners for life settlements – through synthetic emulation of longevity risk, and more recently,
• Beat Holliger, Managing Director, Munich Re through agency-rated securitizations of life settlement pools. One of the latest strategies
to have emerged is that of “fusion” life settlement products, which involves blending
• Kyle Freeman, Catastrophe Risk Management, USAA policies with complementary asset classes to create hybrid investment products with
• Wai-Keung Tang, Managing Partner, Kappa Life distinct characteristics. Matthew Browndorf, one of the pioneers of the new
• Michael Freedman, SVP, Governmental Affairs, Coventry strategy, will explain how to optimally construct fusion life settlement
• Eddie Stone, Managing Partner, Stone Beach Capital products that preserve the non-correlated benefit of the asset class while
mitigating longevity risk. See page 4 for more details.
• Greg Hagood, Principal & Co-Owner, Nephila Capital
• Niraj Patel, Managing Director, Credit Derivatives and ILS,
Genworth Investments The Future of Insurance Risk Transfer
• Brian Tijan, Director, Life Finance Group, Credit Suisse Professor Kenneth Froot, André R. Jakurski Professor of Business
• Brian Smith, CEO, Life Equity Administration, Harvard Business School
• Michael Stahel, Head of ILS, Clariden Leu IQPC is honored to welcome Professor Kenneth Froot to deliver the opening keynote
• Luca Albertini, CEO, Leadenhall Capital Partners address at the 7th ILS Summit. Professor Froot is one of the world’s leading authorities
in the area of risk transfer and insurance-securitization, and will devote his keynote
• Karsten Bromann, Managing Partner & CRO, Solidum address to the future of the space … where the most disruptive innovations
Partners are likely to occur, how the financial recovery is likely to impact demand for
• Michael Mandell, Managing Member, Highbrook Capital insurance-linked securities on both the life and non-life sides, how technology
• Heinz Kubli, Managing Partner, Fundabilis will transform this marketplace in the years to come. An unmissable session –
• Matthew Browndorf, Founder & Chief Investment Officer, see page 4 for more details.
Browndorf PEM
• Anatoly Burman, Senior Managing Director, Aladdin Capital
Management Pension & Endowment Fund Think Tank – New for 2010
• Enda McDonnell, CEO, Access Re
• John Kiernan, Managing Director, Guggenheim Capital
Attendance confirmed from APG, OTPP, TIAA-CREF, as of 10/16/09
E-mail Toby Donovan to request an invitation: toby.donovan@iqpc.com
Sponsors: 3
4. Main Conference Day 1
Thursday, January 28, 2010
“This is THE must attend ILS event. So many people attend the event - the networking is one
of the main benefits.” - Michael Stahel, Head of Insurance-Linked Investments, Clariden Leu
7:15 Coffee & Registration 10:00 CROs Roundtable:
Sponsor Considerations
8:15 Chairman’s Opening Remarks on the Role of ILS within a Comprehensive Risk
Management Strategy
8:30 Opening Keynote Address: The Future of • Identifying the advantages of insurance-linked securities compared
Insurance Risk Transfer with traditional reinsurance
• Understanding the disadvantages
• The financial crisis and the changing paradigm for insurance risk
• Understanding the most effect strategies for complementing your
transfer
• Considerations on the future of insurance-linked securities and reinsurance coverage through ILS
• Considerations on structuring catastrophe bonds: Making the
other forms of alternative risk transfer
• Defining the future role of the global reinsurance industry in the choice between indemnity, parametric and hybrid bond triggers
• Risks, perils and layers best for reinsurance and those best for ILS
transfer, mitigation, and securitization of risk
Dr. Ken Froot, André R. Jakurski Professor of Business transactions
• Comparing ILS with collateralized reinsurance from a capacity and
Administration, Harvard Business School
risk standpoint
9:15 Keynote Guest Address: Jean-Luc Besson, Chief Risk Officer, SCOR
Climate Change and the Future of Hurricane Elaine Caprio Brady, VP, Ceded Reinsurance Operations, Liberty
Activity Mutual
• Examining the impact of climate change on the incidence, and Amer Ahmed, Chief Risk Officer, Allianz
severity, of tropical storms and hurricanes Insa Adena, Head of Advanced Risk Intermediation, Allianz
• Forecasting changes in the spatial distribution of tropical storms
• Analyzing the financial implications of increases in 10:45 Morning Networking Break
storm activity within vulnerable geographic regions
Dr. Kerry Emanuel, Professor of Atmospheric Science, MIT
Concurrent Sessions Begin: Choose Track A or B
Track A: Non-Life (Cat Bonds and other forms of P&C Insurance Securitization) Track B: Life (Life Settlements, Longevity Risk & Life Insurance Securitization)
11:30 Examining the Role of the Lehman Collapse in the A New Approach to Life Settlement Investments:
Strengthening of the ILS Market “Fusing” with Other Asset Classes to Mitigate
•
New and improved transparency: Documentation standardization, Longevity Risk
development of PERILs and other ways to increase clarity in the ILS • Identifying suitable target asset types for fusing with life settlements
market • Examining the investment dynamics of fusion life settlement products
•
De-risking structures: Evolution of ILS structures from 2008 and •
Comparing the investor base: Does the fusion innovation broaden the
beyond appeal of longevity-based investments?
• What is required to keep the ILS market growing efficiently and • Understanding – and avoiding – the dangers associated with fusion
effectively products
Martin Bisping, Head of Non-Life Risk Transformation, Swiss Re Matthew Browndorf, Founder & Chief Investment Officer,
Browndorf PEM
12:15 Panel Discussion: Towards Deeper, Transparent, and Hedging Tools for Life Settlement Funds:
More Liquid ILS Markets: Forecasting the Impact of Examining the Full Range of Strategies for
Innovation and Technology on the Future of Non- Mitigating Longevity Risk within a Portfolio
Life Risk Transfer • Life settlement portfolio simulation exercise: Understanding how
• Understanding the importance of increasing transparency within the excess longevity can affect the profitability and/or viability of a life
ILS space settlement fund
• Charting the impact of exchange-traded products and technological • Identifying the full range of hedging mechanisms available for a life
solutions on the efficiency and depth of the market settlement portfolio, including:
• Examining the role of new trigger structures and risk transfer - Reinsurance
mechanisms - Synthetics
• Expanding the investor base for insurance-linked securities - Capital protection
Martin Bisping, Head of Non-Life Risk Transformation, Swiss Re - Currency hedging
John Seo, Managing Principal, Fermat Capital • Principles for determining which hedging strategy is right for you,
Dr Andreas M ller, Head of Origination, Distribution, based on the size and morbidity of your portfolio
ILS Investments, Munich Re David Rawson-Mackenzie, Fund Director, Centurion Fund
Managers
Franz-Philippe Przybyl, CEO, Berlin Atlantic Capital
Heinz Kubli, Managing Partner, Fundabilis
4 1-800-882-8684 • www.ilsnewyork.com
5. Main Conference Day 1 Continued
“I enjoyed the conference and thought it was well worthwhile. You did a great job of organizing such a large and expert
group of people, especially in the current economic environment.” - Morton Lane, President, Lane Financial LLC
1:15 Networking Luncheon sponsored by:
2:15 Triparty Repo vs. Government-Guaranteed Solutions: Uncovering the Investment Opportunities in
The Future of Collateral Management Synthetic Longevity Products:
• Examining the collateral structures of recent catastrophe bonds New Risk/Reward Trade-Offs for New Kinds of
• Comparing the advantages of the triparty repo with government- Investor
guaranteed collateral solutions like treasuries and KfW floating notes • Identifying the circumstances in which makes sense to take out
• Focus on Triparty-Repo structures synthetic longevity exposure
• Focus on government-guaranteed solutions • Understanding the difficulties involved in pricing tail risk
• A look at the collateral structures on the cards for 2010’s cat bond • Comparing synthetic products with cash investments in the secondary
issues market
• Lifting the lid on innovations in synthetic products
Vincent Prabis, ILS Fund Manager, Acheron Capital
Michael Leybov, Managing Director, Horton Point Michael Mandell, Managing Member, Highbrook Capital
Beat Holliger, Managing Director, Munich Re Marcel Grandi, Senior Portfolio Manager, Insurance-linked
Strategies Team, Credit Suisse Asset Management
3:00 World Bank Update: Longevity Swaps:
Examining the Future Role of ILS in the Catastrophe An Effective Risk Management Tool for Pension Funds?
Risk Management Strategies of Member Countries • Understanding the structure of a conventional longevity swap:
• A closer look at the capacity needs of World Bank member countries exchanging fixed payments to the swap provider in exchange for
• Understanding how the World Bank is working to improve disaster coverage of pension payments beyond a certain age
preparedness and risk mitigation capabilities • Identifying the risks associated with entering into a longevity swap
• Examining the role of catastrophe bonds in the risk transfer strategies from the pension point of view:
of developing nations - Credit risk of the counterparty
• Spotlight on the Caribbean Catastrophe Risk Insurance Facility - Longevity risk miscalculation
• Identifying future investment opportunities proceeding from World • Overcoming the challenges involved with selecting a longevity swap
Bank risk mitigation activities counterparty
Ivan Zelenko, Head of Derivatives and Structured Finance, • Creating swap documentation that incorporates some measure of
World Bank Treasury flexibility, including (if possible) an early exit clause
3:45 Afternoon Networking Break
4:30 Investment Opportunities in Collateralized Achieving Superior Returns and Diversification
Reinsurance Benefits through Investments in Extreme Mortality
• Comparing collateralized reinsurance to traditional reinsurance and • Examining the structures of recent mortality transactions including
insurance-linked securities Vita, Osiris & Nathan
• Examining the returns possible through collateralized reinsurance • Tracking the influence of pandemic and swine flu jitters on mortality pricing
• Putting mortality bonds in context: Understanding the level of
investments
• Considerations on the choice of investment trust and letters of credit mortality needed to trigger losses
• Quantifying the effectiveness of extreme mortality as a hedge against
arrangements
• Forecasting future changes in the size of the collateralized reinsurance excess longevity
sector Urs Ramseier, Head of ILS, Horizon 21 Alternative Investments
Stephen Velotti, Chief Underwriting Officer, Juniperus Capital Luca Albertini, CEO, Leadenhall Capital Partners
Greg Hagood, Principal & Co-Owner, Nephila Capital
5:15 The Global Market for Industry-Loss Warranties Realigning your Fund Structure with the New
• Examining the current state of the ILW market Taxation Regime
• Comparing the volume of 2009 ILW coverage with the total 2009 cat Cost-Effective Solutions for Responding to the IRS
bond issuance Guidance
• Understanding the advantages of ILWs compared with cat bonds: • Understanding what the IRS rulings mean for the taxation of death
- Shorter time to market benefits en-route to your fund
- Smaller transaction costs •
Determining the most suitable regions for setting up a life settlement fund
• Identifying the sources of international investment capital within your
- More competitive pricing
• Quantifying the impact of the new Perils index on the future of the portfolio
market in European ILWs •
What to do if you have both treaty and non-treaty investment sources
• Creating transparent structures to avoid commingling headaches if
Chase Toogood, CEO, Iris Re
Patti Guattari, Director, Swiss Re setting up a fund from scratch
Enda McDonnell, CEO, Access Re Jose Garcia, CEO, Carlisle Fund Management
5:45 Cocktail Reception sponsored by
7:00 End of Day 1
Sponsors: 5
6. Main Conference Day 2
Friday, January 29, 2010
“I was very positively surprised to see so many people attending the conference – especially in the
current environment. This speaks for itself and, obviously, for the conference organizers. IQPC’s ILS
Summit is most certainly an event worth attending.”
- Beat Holliger, Managing Director, Munich Re Capital Markets
7:15 Coffee & Registration
8:15 Chairman’s Opening Remarks
Concurrent Sessions Begin: Choose Track A or B
8:30 Keynote Address: When Models Disagree: Keynote Guest Address:
A Fund Manager’s Perspectives on the Investment The Evolving Parameters of Human Longevity:
Implications of Conflicting Catastrophe Models Biotech Perspectives on the Ability of Medical
• Comparing applications for catastrophe models: ILS vs. traditional Technology to Enhance the Human Lifespan
reinsurance • Examining the factors that will continue to play a role in the
• Understanding how different applications make use of different extension of longevity:
analytical modules - Biotechnology & genetic engineering
• A closer look at the way modules interact in indemnity-style - Improvements in diet
transactions compared with parametric-style transactions - Medical advancements in the treatment of cancer, respiratory and
• Getting to grips with the “fudge-factor” in catastrophe models: Why heart disease
cat bond analyses disagree more frequently than reinsurance analyses • Examining the factors likely to increase levels of mortality:
• Addressing the suspicion of “model-shopping” by sponsors of - Obesity & the “sedentrification” of the Western lifestyle
catastrophe bonds - Flu and the risk of pandemics
• Understanding the implications for investors in catastrophe bonds: - Population growth and geopolitical tensions
Does model divergence really matter, and what can investors do • Combining the factors into a unified model: How will our longevity
about it? be influenced by changes in 21st century life?
John Seo, Managing Principal, Fermat Capital Bill Caldwell, CEO, Advanced Cell Technology
9:30 Fund Managers’ Perspectives on ILS Portfolio Making Securitization Mainstream:
Construction: A Vision of Future Life Markets
Identifying the Most Effective Combinations of Trigger, • A closer look at past securitization attempts: Tarrytown, Legacy, AIG
Peril and Collateral Structures • Examining the obstacles to mainstream securitization:
• Understanding the full range of diversification strategies: - Inadequate transparency and fee disclosure
- Diversification by peril (wind, quake, life) - Residual lack of “comfort factor” among rating agencies
- Diversification by geography (US, Europe, Asia, South America) • Understanding the importance of increased clarity and
- Diversification by investment type (cat bonds, ILWs, sidecars, standardization of the general methods for predicting life
exchange-traded products expectancies
• Identifying the most effective diversification combinations for • Establishing rating agency standards for assessing credit risks
conservative, moderate, and high levels of risk tolerance associated with securitization transactions
• Fund manager perspectives on new collateral arrangements: • Examining the possible risks of securitization
Expressing a preference between treasuries, floating KfW notes, and Anatoly Burman, Senior Managing Director, Aladdin Capital
triparty repo Management
Niraj Patel, Managing Director, Credit Derivatives and ILS, John Kiernan, Managing Director, Guggenheim Capital
Genworth Investments
Luca Albertini, CEO, Leadenhall Capital Partners
Aashh Parekh, Director, Global Public Markets, TIAA-CREF
10:30 Morning Networking Break
Track A: Non-Life Track B: Life
11:15 Examining Uncertainties in Climate Models: The Evolution of Regulatory Attitudes towards the
Forecasting the Impact of Best and Worst Case Secondary Market for Life Insurance
Climate Scenarios on the Future of the ILS Market • Regulatory attitudes towards STOLI and the emerging consensus on
• Identifying the key uncertainties in climate models “insurable interest”
• Understanding what model uncertainties reveal about best and worst • An overview of the proliferation of life settlement regulations and
case future climate scenarios what it means for consumers, companies and investors.
• What is the role of regional models in climate understanding? • The relationship between the regulators and legislators regarding life
• Determining the economic consequences of model uncertainties settlements: where it has been and where it’s going
• Analyzing the possible implications for the future of the ILS market Commissioner Paulette Thabault, Commissioner, Vermont
Dr. Lenny Smith, Professor of Statistics, London School of Economics Insurance Department
Dr. Pauline Barrieu, Reader in Statistics, London School of Economics Commissioner Gennett Purcell, Commissioner, DC Insurance Department
6 1-800-882-8684 • www.ilsnewyork.com
7. Main Conference Day 2 Continued
“Well done on a very good event.” - Eamonn Ling, Investment Director, Catalyst Investment Group
12:00 Parametric Cat Bonds: The Role of the US Federal Government in Life
Basis Risk and Model Uncertainty for Issuers and Settlements and Insurance
Investors • IRS Revenue Rulings 2009-13 and 2009-14 – what has been
Basis risk for issuers: happening since these rulings took effect in August 2009?
• Introducing an analytical framework to evaluate the basis risk of • What is the proper role of the SEC in life settlements?
parametric cat bonds • Capitol Hill Update: What will happen with life settlements and life
• Quantifying the basis risk reduction benefit achieved by using insurance in 2010 and beyond?
sophisticated optimization algorithms Commissioner Gennett Purcell, Commissioner, DC Insurance Department
• Identifying critical aspects of basis risk that can be potentially
overlooked by issuers and their advisors
Model uncertainty for investors:
• Quantifying the level of model uncertainty associated with parametric
bonds
• Outlining an analytical process to systematically differentiate and
quantify the model uncertainty for different types of parameter triggers
Lixin Zeng, Portfolio Manager, Alpha Cat Fund
12:45 Networking Luncheon
2:00 Integrating ILS into USAA’s Property Catastrophe Actuarial Perspectives on Older Age Mortality:
Reinsurance Program Examining the Shift in Life Expectancies and the
• The importance of collateralized coverage (both traditional and ILS) to Implications for Life Settlement Values
a reinsurance program • Charting the evolution of actuarial perspectives on older age mortality
• The pros and cons of ILS as compared to traditional reinsurance • Understanding how different actuarial groups perform mortality calculations
• Issues that can arise from having mismatches in coverage between • Is it an asset or a liability? Principles for determining whether a life insurance
traditional and ILS-backed reinsurance policy represents a buying opportunity or “a falling knife”
• Determining where ILS-backed coverage can fit into an overall Eddie Stone, Managing Partner, Stone Beach Capital
reinsurance structure
Kyle Freeman, FCAS, MAAA, Catastrophe Risk Management, USAA
2:45 New Hybrid Loss Triggers: Bridging the Desirability The European Life Settlements Markets:
Gap Between Sponsors and Investors Achieving a Better Understanding of the Sources
• Examining the desirability gap between indemnity and parametric and Motivations of European Investment Capital
bond triggers • Identifying the sources and types of European investment capital
• Understanding the capital implications of different trigger structures • Examining the geographical dispersal of European investors
• Enhancing granularity in loss allocation by structuring synthetic throughout Denmark, Norway, the Netherlands, Switzerland,
protection in smaller units Luxembourg, Germany, France and the UK
• Understanding the role that hybrid loss triggers will play in the future •
Understanding the role that life settlements play in European asset
of catastrophic risk transfer allocation strategies
• Overcoming the obstacles to attracting European investment capital
Franz-Philippe Przybyl, CEO, Berlin Atlantic Capital
Beat Hess, Managing Partner, AA Partners
Heinz Kubli, Managing Partner, Fundabilis
3:30 Enhancing the Deal Flow: Further Afield…
Creating a Dialogue Between Issuers and Investors Exploring New Investment Opportunities in Asia &
in Order to Reduce the Disconnect Between Supply Latin America
and Demand •
Identifying the sources and types of Asian and Latin American
• Understanding the disconnect between deals being brought to market investment capital
and capital looking for a home •
Examining the geographical dispersal of Latin American investors
• Understanding the interrelationship between pricing levels, hurricane throughout Argentina, Chile, Brazil, Venezuela and Colombia
activity, investor interest and sponsor interest •
Examining the geographical dispersal of Asian investors throughout
• Identifying possible solutions to the deal flow problem: Thailand, Malaysia, Singapore, Hong Kong, and Australasia
- Making the deal flow more regular, to improve the interplay •
Overcoming the obstacles to attracting Asian and Latin American
between supply and demand investment capital
- Improving the transparency of the deal flow Wai-Keung Tang, Managing Partner, Kappa Life
- Increasing the frequency of new issues through smaller-sized,
more standardized transactions
• Creating stronger dialogue between issuers and investors to remove
the obstacles to the growth of the market
• What’s next? A look to the ILS deal flow in 2010 and beyond
Karsten Bromann, Managing Partner & CRO, Solidum Partners
Michael Stahel, Head of ILS, Clariden Leu
Paul Schultz, President, Investment Banking, AON Benfield
Insa Adena, Head of Advanced Risk Intermediation, Allianz
4:15 End of Conference
Sponsors: 7
8. Pre-Conference Workshops
Wednesday, January 27, 2010
“The conference was great and I learned a lot of new things, especially within the pre-conference workshops!
I think you did a fantastic job in pulling everything together, the speakers had excellent experience and
knowledge. Keep up the good work!” - Sun-Siang Liew, Senior Analyst, Validus Research
Capital-Raising for your ILS Fund Capital-Raising for your Life Settlements Fund
A Many ILS funds suffered in the early part of 2009, with the
B The life settlements space has witnessed a great deal of innovation
financial crisis forcing redemptions within an asset class that in 2009, but also a lot of regulatory challenges and negative press.
was performing well compared with the rest of the Additionally, the asset class requires high levels of sophistication and
marketplace. Now that the dust has settled and many investors education among investors, and it is – at least in its cash form –
are seeking uncorrelated investments as part of their de-risking both a long term investment and an illiquid one. In the midst of
9:30am – 12:00pm (Registration at 9:00am)
strategies, ILS funds stand to capitalize… but they will also face these negatives, many life settlement funds have experienced
strong competition for fresh capital as well as newly difficulties in communicating the extensive benefits of the asset class
demanding due diligence procedures. How can ILS funds to new and wary investors. How can they succeed going forward?
distinguish themselves in the new environment? How can they What are the most effective fund structures and capital raising
position themselves first in the line for institutional and other strategies for broadening the investment base for life settlements?
forms of investment capital? What fund structures will prove to How can an individual fund gain advantage over its competitors?
be the most successful?
What You Will Learn:
OR What You Will Learn:
• Identifying the most viable sources, types and geographies of
• Identifying the most viable sources, types and geographies of
investment capital for life settlements
investment capital for insurance-linked securities • Understanding how life settlement investment decisions vary
• Understanding how the ILS asset allocation decision-making
between various kinds of investor
process differs between various kinds of investor • Examining strategies for restructuring your fund in order to attract
• Examining strategies for restructuring your fund in order to
new sources of investment capital, especially in the light of new
attract new sources of investment capital IRS taxation guidance
• Considerations regarding the marketing and competitive • Evaluating the importance of maintaining transparent origination
positioning of your fund processes
How You Will Benefit: How You Will Benefit:
• Get an edge over your competitors in the hunt for new • Get an edge over your competitors in the hunt for new
investment capital investment capital
• Present your investment strategy in a way that matches the • Present your investment strategy in a way that matches the
allocation decision-making process for each investor groups allocation decision-making process for each investor groups
• Understand – and avoid – the key mistakes made by fund • Understand – and avoid – the key mistakes made by fund
managers as they raise capital managers as they raise capital
360° Risk Management for Life Settlement Portfolios
1:00pm – 3:30pm (Registration at 12:30pm)
C Investing in life settlements is a complicated business, with a number • Determine the right legal structure for the right jurisdiction (Ireland,
of critical risks that need to be addressed by the investor in order to Luxembourg) to help mitigate tax issues such as the potential
maximize returns. This workshop will provide investors, fund impact of the recent IRS rulings
managers, and others involved in the life settlements space with the • Examine synthetic strategies for managing liquidity risk, including
tools they need to manage and reduce risk, whether it’s the risk of how to hedge liquidity and currency/credit risks associated with a
longevity, the risk of incorrect valuation, the risk of sub-optimal policy life settlement portfolio
selection, as well as legal and liquidity risks. An unmissable workshop
for those seeking to invest with confidence! How You Will Benefit:
• Invest in confidence
What You Will Learn: • Get a comprehensive understanding of the risks involved with
• A closer look at the policy selection process – safeguarding against investing in life settlements before you commit capital
insurable interest and other potential procurement issues • Walk away with the most cost-effective strategies for reducing the
• Understand how the valuation process can help to mitigate riskiness of your life settlement investments
extended longevity risk in a life settlement portfolio
4:00pm – 6:30pm (Registration at 3:30pm)
Making Better Use of Catastrophe Models
D Catastrophe models are a criticial part of the puzzle for investors in • Gain a better sense of the ways catastrophe models are used in the
non-life ILS, but there are few outside the modeling agencies structuring – and choice – of cat bond triggers
themselves who understand exactly how the models are designed. In
this workshop, take a look “under the hood” of some of the world’s How You Will Benefit:
most important and popular catastrophe models, and learn how to • Learn what the implications are of discrepancies between different
make better use of models in your investment calculations. catastrophe models
• Become a more sophisticated cat bond investor by better
What You Will Learn: understanding the relationship between modeled values and cat
• Understand how catastrophe models combine actuarial science, bond pricing
engineering, seismology, metereology and expert opinion
• Examine the interrelationship between hazard, inventory and
vulnerability values within cat models
8 1-800-882-8684 • www.ilsnewyork.com
9. About Our Sponsors
“The conference was exceptional. The program and speakers, as well as the attendees, were all
excellent. We look forward to working with you on the upcoming conferences.” - Michael Freedman,
Senior Vice President, Government Affairs, Coventry
For over 25 years, Coventry has been redefining insurance. Founded in 1982, Coventry began as an insurance
marketing, product development and policy administration firm. Known as a leading innovator in the industry,
Coventry assisted insurance carriers in the development of product, software and distribution. It established itself as
one of the top corporate life insurance companies in America during the 1990s, servicing over 70,000 policies for its
corporate clients. In 1998, Coventry created the secondary market for life insurance in the United States and coined
the term “life settlement”. As the market leader, Coventry has structured and financed transactions representing
more than $25 billion of death benefit and has been a key driver behind the market’s rapid growth. Today, Coventry
is the largest purchaser and servicer in the longevity and mortality market, employing more than 200 people. Based
in Pennsylvania, Coventry was the first secondary market firm to earn Standard and Poor’s highest servicer ranking
(2004 and reaffirmed in 2006). In 2005, Coventry was first in revenue in the insurance category of the annual Inc.
500 listing of the fastest growing private companies in America. Website: www.coventry.com
As one of the world’s leading banks, Credit Suisse provides its clients with investment banking, private banking and
asset management services worldwide. Credit Suisse offers advisory services, comprehensive solutions and innovative
products to companies, institutional clients and high-net-worth private clients globally, as well as retail clients in
Switzerland. Credit Suisse is active in over 50 countries and employs approximately 48,000 people. Credit Suisse’s
parent company, Credit Suisse Group, is a leading global financial services company headquartered in Zurich. Credit
Suisse Group’s registered shares (CSGN) are listed in Switzerland and, in the form of American Depository Shares
(CS), in New York. The Life Finance Group at Credit Suisse is a dedicated group of over 90 professionals with
backgrounds in various industries which include insurance, banking, structuring, sales and risk management based in
New York, London and Hong Kong. Website: www.credit-suisse.com
At LIFE EQUITY, our pricing philosophy is governed by the standard that two policies with the same criteria will
receive the same offer. We believe this approach results in consistent and higher payments to owners of life
insurance policies who wish to integrate a life settlement into their financial planning. Our funding comes from top-
rated financial institutions and not from private investors. LIFE EQUITY makes direct contact with policy owners or
their intermediaries regarding offers made. This practice assures a more efficient and expeditious process. Website:
www.lifeequity.net
SPONSORSHIP AND EXHIBITION OPPORTUNITIES
Sponsorships and exhibits are excellent opportunities for your company to showcase its products and services to high-level, targeted decision-makers
attending the 7th Insurance Linked Securities Summit. IQPC and Finance IQ help companies like yours achieve important sales, marketing and branding
objectives by setting aside a limited number of event sponsorships and exhibit spaces – all of which are tailored to assist your organization in creating a
platform to maximize its exposure at the event.
For more information on sponsoring or exhibiting at the 7th Insurance Linked Securities Summit, please contact Mario Matulich at 212-885-2719 or
sponsorship@iqpc.com.
Media Partners:
Sponsors: 9