Bermuda-domiciled special purpose vehicle Tramline Re, the first catastrophe bond from UK-listed insurer Amlin, is reported by Artemis to have doubled in size from its initial $75m target issuance. The first tranche from Tramline Re will provide Amlin AG with protection against US hurricane, US earthquake and European windstorm. The three-year deal expires at the end of 2014. It was reported that the offering priced at 1675 basis points above money market funds, at the lower end of Amlin's expectations. Such strong support for the Amlin offering at a lower coupon level than might have been expected will be good news for potential catastrophe bond providers in 2012, because such "combined" cat bond offerings have traditionally had a harder time in beating target than have monoline catastrophe offerings such as US hurricane or European windstorm.

There will be limited impact on Japan-based Tokio Marine Holdings as a result of its $2.7bn takeover of US-based Delphi Financial Group, rating agency Fitch said yesterday. The insurer's share price had suffered a 1.5% fall on the Nikkei, with the market feeling that the takeover would give the insurer less opportunity to buy back shares in the near term. However, Fitch noted that the ¥200bn deal was small relative to the insurer's net assets of ¥1.81trn. Fitch said that the deal was likely to be positive for the insurance group's credit profile in the medium term, "given DFG's extensive franchise in the US life and non-life insurance markets as a niche player with solid underwriting experience". Fitch said that DFG's specialisms, in employee benefits, excess workers' comp and absence management, would diversify Tokio Marine's risk profile, with "little overlap with (Tokio Marine Holdings') existing US non-life insurance subsidiary, Philadelphia Consolidated Holdings Corp. Analysts noted that Tokio Marine was paying a 71% premium to a 20-day share price average, which could have a negative impact on the Tokio Marine share price in the near term. The move will increase Tokio Marine's income from abroad to 46% of earnings, up from the current 37%. One other area of slight concern expressed by analysts was that Tokio Marine was expanding out of one mature insurance system (Japan) into another (the US).

Grahame Millwater, seen as Joe Plumeri's right-hand-man at global broker Willis, is to leave the company, although he will stay on as a consultant until the end of 2013. Mr Millwater's role as head of Willis Global will be taken over by Steve Hearn, but the post of Willis Group Holdings president will become vacant. Willis did not say whether an internal or external candidate was likely to take on the role of president. The occupant effectively would be seen as the heir apparent to chairman and CEO Joe Plumeri, whose contract expires in mid-2013. Mr Millwater said that "after spending my entire professional career since leaving university with one company, I have been privileged to work with an extraordinary team of people from around the world and am retiring from Willis with many friends. I'm grateful to Joe for the many leadership roles I've enjoyed over the past decade and look forward to spending some time with my family and considering new opportunities". Mr Millwater joined Willis as a graduate trainee in 1985. Internal "rising stars" at Willis include Mr Hearn, made CEO of Willis Re earlier this year, and Tim Wright, appointed CEO of Willis International in October as replacement for the departing David Margrett. Mr Wright will also be responsible for Willis UK & Ireland from January 2012.

The board of the California Earthquake Authority, the state-administered quake insurer, has approved the offering of a second catastrophe bond for up to $300m in early 2012 following the success of its first cat bond offering earlier this year. The CEA intends to keep tapping capital markets in an effort to bring down the cost of quake coverage and boost sales. Fewer than 10% of Californians have quake cover. In its first cat bond offering, through Bermudian special-purpose vehicle Embarcadero Re, the CEA obtained $150m in reinsurance backing. That offering was oversubscribed by three times. The second offering is also expected to be made through Embarcadero Re.