Mizuho kick-starts insurance derivatives business

The business will originate and structure insurance-linked securities – instruments which bridge the insurance and capital markets – directly from the insurance industry as well as corporate entities.

Roggenkamp joined the firm in April of this year after 10 years with HVB, where he was director of alternative risk transfer. Since joining Mizuho, he has hired Armin Wagner, a portfolio manager from HVB, and Kai Morgenstern, formerly a senior underwriter of GE Franconia Re as part of his team.

"There are a number of similarities between the insurance derivatives market now and the credit derivatives market eight or so years ago," said Marc Petrocochino, managing director responsible for proprietary and arbitrage desks at Mizuho, commenting on the potential for growth in the market.

"John Coomber, chief executive of Swiss Re predicted in a recent interview that the reinsurance industry will securitise 30% of its turnover by 2015. We see absolutely no reason to question that figure," added Roggenkamp.