Convergence 2013 to be held on Pier Six rooftop

The first date in the diary for the newly renovated Pier Six rooftop in the City of Hamilton will be Convergence 2013, a new insurance-linked securities (ILS) event, which is being held on November 13 and 14.

Organisers, ILS Bermuda, have set up the event for investors, reinsurance and insurance companies and service partners to meet, network and learn about ILS such as catastrophe bonds.

Catastrophe bonds are ILS, or financial instruments sold by insurers and reinsurers to share the risk they take on for natural disasters and other events that can lead to costly payouts.

Bermuda has been positioning itself as a leading jurisdiction in the setting up, marketing and listing of these financial instruments as well as other complex structures such as industry loss warranties and sidecars.  In fact, in 2011 and 2012, Special Purpose Insurers (SPIs), which are vehicles used to set up ILS, represented 43 percent and 51 percent of the Bermuda Monetary Authority company registrations.

From a standing start in 2009, Bermuda now has 63 ILS structures listed on the Bermuda Stock Exchange with $8.87 billion in market capitalisation.

“We are absolutely delighted to be hosting this event in Bermuda for the first time,” said Kathleen Faries, CEO of Tokio Solution, who is on the organising committee of ILS Bermuda. “Convergence 2013 will showcase the market intelligence we have on the Island to those interested in investing in reinsurance. We are particularly excited about the unique iconic structure on Pier Six – it is not only visually striking but will provide our delegates with a unique and comfortable space in which to network and discuss deals"

Jason Carne, Managing Director and Head of ILS at KPMG in Bermuda, who is also on the organising committee, said: “We really hope that the conference will introduce new investors into the ILS space. It is a networking event that brings people together and where deals are discussed and brought to life – and it should be fun too.

“We hope this will be an event that becomes a key date on the ILS calendar that will also showcase Bermuda and confirm its status as the number one ILS jurisdiction.”

Brad Adderley, Insurance Partner at Appleby and also on the organising committee, explained why it was a good time to host the new event in Bermuda. He said: “The ILS market has experienced exponential growth – in Bermuda alone, listings have topped $8.7 billion. There is heightened interest in independent ILS asset managers due to their innovation and proficiency in the market.

“And investors are looking at what options they have and want to explore these with greater ease. After another banner year of ILS transactions and listings, and with 1 January renewals around the corner, Convergence 2013 is a not-to-be-missed event offering the market a way to come together to discuss new capital opportunities while focusing on the best way to manage risk.”