Cat bond issuance hits record $12.5 billion
Catastrophe bond issuance reached a record of $12.5 billion in 2021, according to Aon. Up from the previous highest total of $11bn in 2020, the new issuance brings the value of active bonds in the market to $32bn. Aon’s investment banking arm Aon Securities participated in $7bn of last year’s issuance. The catastrophe bond sector […]
Catastrophe bonds increase in importance again: Fitch
Catastrophe bonds increased in importance for the global reinsurance industry again in 2021, Fitch Ratings has said, as the record levels of issuance seen helped to make cat bonds an even larger pool of risk capital supporting reinsurer businesses. Momentum in the catastrophe bond market continues to increase, Fitch said in a recent report, highlighting […]
Philippines cat bond triggers on typhoon Rai (Odette) winds, $52.5m payout due
The Philippines government will make a recovery under the terms of its World Bank issued IBRD CAR 123-124 catastrophe bond, as the event calculation process has now run and super typhoon Rai (locally known as Odette) has breached the parametric trigger for wind, Artemis has learned. As we reported back on December 22nd, the Philippines Government […]
ILS fund return potential rising with reinsurance rates: Frontier Advisors
The forward-looking return potential of many insurance-linked securities (ILS) fund portfolios continued to rise over the last year and it’s likely this has accelerated through January 2022, as price rises in reinsurance and retrocession boost no-loss and expected return metrics. Recent analysis undertaken by Frontier Advisors, an Australian independent investment consultant with an insurance-linked securities […]
Private ILS allow investors to harvest illiquidity premia: Ahmad, Schroders
For investors looking at insurance-linked securities (ILS), in order to gain the full diversifying benefits of an allocation to the asset class, it is important to look to the private ILS and collateralised reinsurance segment as well as catastrophe bonds, Zeba Ahmad, Alternatives Director at Schroders has said. While catastrophe bonds provide a clear way […]
Catastrophe bonds integral to insurance ecosystem: Schultz, Aon Securities
Just over twenty-five years since the issuance of what is considered the first true, widely syndicated, catastrophe bond transaction, the structure has cemented its role within the insurance ecosystem, according to Aon Securities CEO Paul Schultz. Commenting on the record year of 144A catastrophe bond issuance seen in 2021, Schultz of Aon Securities, the investment […]
UNDP IRFF: Sustaining development via insurance and risk finance solutions in 8 countries
As risk grows, it is time to rapidly scale-up insurance and risk-transfer solutions for the countries and communities most in need. UNDP lays the groundwork for full implementation. UNDP will start insurance and risk-financing work in eight new countries in the first quarter of this year. This work is backed by funding from the German […]
Twelve Capital gets strategic investment from Graubündner Kantonalbank
Twelve Capital Management, the Zurich-headquartered catastrophe bond, insurance-linked securities (ILS) and reinsurance linked investment fund manager, is taking a strategic investment from one of Switzerland’s cantonal banks, Graubündner Kantonalbank. Graubündner Kantonalbank has agreed to acquire a 30% stake in the holding company of the specialist insurance and reinsurance focused investment firm, Twelve Capital Holding AG. […]
TWIA opts for Aon for catastrophe modeling services
The Texas Windstorm Insurance Association (TWIA) is now set to finally appoint insurance and reinsurance broker Aon to provide catastrophe risk modeling services, after the company was recommended by its Actuarial & Underwriting Committee after a second round of RFP’s. TWIA had issued a request for proposals (RFP) for catastrophe modeling services back in October […]
Tonga gets World Bank CAT-DDO funds for volcano & tsunami recovery
The Pacific Island nation of Tonga will receive a US $8 million payout disbursement from a World Bank arranged catastrophe contingent line of credit, under a Catastrophe-Deferred Drawdown Option, or CAT-DDO. Tonga and other islands in the region were severely impacted by the eruption of the Hunga Tonga volcano on January 15th and the resulting […]