Ex-Aquila weather head says reinsurers are still backing his team
Five reinsurance companies that invested in troubled energy company Aquila’s weather business, which closed earlier this month, are likely to retain their partnerships with the old weather trading team headed by Ravi Nathan, former chairman of the Weather Risk Management Association.
Ex-Aquila weather traders have sought a new backer, following the closure of the company’s energy trading business earlier this month. The 18-strong team, which comprises traders, IT and back-office staff, is in talks with hedge funds, banks and reinsurance companies interested in establishing a weather derivatives desk, said Nathan.
Aquila had reached an agreement with Chicago-based hedge fund Citadel Investment Group to provide Aquila traders with potential career opportunities. Nathan confirmed he has approached Citadel, but declined to name any other interested parties.
Aquila’s weather desk has also partnered with Gensec Bank in South Africa, the International Finance Corporation (IFC) – the World Bank’s private sector arm – and Agroasemex, a Mexican government-owned insurance company specialising in agriculture and livestock during the past year. All three organisations relied on Aquila to provide them with the weather risk market know-how necessary for establishing weather risk desks. “We are planning to sever these relationships then reconnect them once we find a new company to work for,” Nathan said.
Aquila was thought to have commanded a 30% share of the weather derivatives market, having picked up a lot of business after Enron, a weather derivatives pioneer, filed for bankruptcy. “Aquila’s departure may have affected liquidity in the secondary market but the primary market is still robust,” Nathan claimed.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on People
People: Isda taps four new directors, O’Callaghan joins CA, Berlinski quits Goldman, and more
Latest job changes across the industry
People: Citi snags Raghavan, SocGen bags Estrada, all change at NYCB, and more
Latest job changes across the industry
Kane to leave Citadel Securities for senior Miax role
Options exchange has been on a four-year acquisition spree
Asia moves: senior hires at Millennium, Citi, SMBC and more
Latest job news from across the industry
Ken Pang set to join Millennium as Asia equities head
Former Credit Suisse markets co-head joins hedge fund’s Hong Kong office
People: Risk shake-up at Santander, JPM juggles markets, and more
Latest job changes across the industry
People: UBS rejigs EQD, risk head departs; Rustad joins buy side, and more
Latest job changes across the industry
Rustad re-emerges at Taula Capital
Former JP Morgan clearing head to help prepare for Q2 fund launch
Most read
- Top 10 operational risks for 2024
- Top 10 op risks: third parties stoke cyber risk
- Japanese megabanks shun internal models as FRTB bites