World Bank: New Financing Tools Receive Major Funding Boost
WASHINGTON, April 19, 2024— New financial instruments designed to boost lending capacity and enable the World Bank Group to take on more risk for shared global challenges have received a significant endorsement. A set of 11 countries announced commitments today for the Portfolio Guarantee Platform, hybrid capital mechanism, and new Livable Planet Fund totaling $11 […]
Alternative capital – A mature option for PE to take advantage of market cycles: BMO
For private equity investors, the use of alternative capital vehicles and insurance-linked securities (ILS) structures presents a mature way to take advantage of reinsurance market cycles in an efficient manner, analysts at BMO Capital Markets have highlighted. This is a trend we’ve closely watched over the years, where some equity investors are now aware that […]
World Bank Issues $420 Million in Catastrophe Bonds for Renewed Disaster Risk Protection for Mexico
Washington D.C., April 17, 2024 – The World Bank (International Bank for Reconstruction and Development, or IBRD, AAA/Aaa), issued three catastrophe (cat) bonds that finance $420 million of insurance coverage for the Government of Mexico against named storm events along the Atlantic coast of Mexico and earthquake events. The cat bonds replace and increase by $60 […]
New cat bond a “fundamental part” of Mexico’s disaster risk management: Suárez, Ministry of Finance
The issuance of IBRD CAR Mexico 2024, the Government of Mexico’s $420 million Mexico earthquake and Atlantic coast named storm catastrophe bond, “is a fundamental part of the federal strategy for Financial Management of Disaster Risks”, according to Héctor Santana Suárez, Head of Insurance, Pensions and Social Security in the Ministry of Finance of México. The […]
Cat bonds can generate investors $17.61bn of cash in 2024: Aon Securities
The catastrophe bond market is expected to generate investors as much as $17.61 billion in cash through 2024, from a combination of coupon payments and maturities, Aon Securities has estimated, which alongside inflows should be ample to help in absorbing what could be another record year of issuance. Of course, that’s as long as there […]
Hong Kong: Protection gaps, Chinese municipalities a key focus for ILS ambitions
After its government expressed its desire to attract more insurance-linked securities (ILS) sponsors to the Hong Kong Special Administrative Region, highlighting a commitment to develop its ILS market, executives from the Insurance Authority have made filling protection gaps a key focus of its ILS ambition. This will include not just attracting international insurance and reinsurance […]
Hong Kong: Protection gaps, Chinese municipalities a key focus for ILS ambitions
After its government expressed its desire to attract more insurance-linked securities (ILS) sponsors to the Hong Kong Special Administrative Region, highlighting a commitment to develop its ILS market, executives from the Insurance Authority have made filling protection gaps a key focus of its ILS ambition. This will include not just attracting international insurance and reinsurance […]
Mexico to add $125m of Pacific named storm cover to World Bank cat bond
As anticipated, the Government of Mexico has returned to secure Pacific named storm protection from another new tranche of World Bank and IBRD facilitated catastrophe bond notes, as the country looks to finalise its latest capital markets source of parametric disaster insurance protection. In recent week’s, Mexico has secured a $420 million source of protection against […]
Hannover Re sponsors $13.75m Cumulus Re cloud outage catastrophe bond
Global reinsurance firm Hannover Re has successfully sponsored a $13.75 million Cumulus Re (Series 2024-1) parametric cloud outage catastrophe bond that was privately issued and placed using the firm’s Kaith Re Ltd. vehicle, with modelling of the cyber risks undertaken by Parametrix. Hannover Re has been looking at a parametric cloud outage retrocession transaction for a […]
Banque Bonhôte launches ESG fund strategy incorporating catastrophe bonds
Banque Bonhôte & Cie, a Swiss private bank, investment firm and wealth manager, has announced the launch of a new environmental, social and governance (ESG) focused fund strategy that will incorporate catastrophe bonds as one of its allocations. Pierre-François Donzé, Head of Asset Management at Banque Bonhôte, said that, “Our approach and the integration of […]