Florida Citizens only buys $3.564bn of reinsurance for 2024, despite 7.9% drop in price
Florida’s Citizens Property Insurance Corporation, the state’s insurer of last resort, has completed its reinsurance renewals for 2024, but only purchased $3.564 billion of coverage across its traditional reinsurance and catastrophe bond arrangements, despite experiencing a softer market environment and lower pricing than a year ago. Florida Citizens had been expected to buy its largest […]
UCITS catastrophe bond funds now make up 25% of the market
Catastrophe bond funds in the UCITS format saw their combined assets under management grow to $12.2 billion by the end of the first-half of 2024, rising 4% in the second-quarter and 11% in the first-half. Impressively, as a share of the outstanding cat bond market, these UCITS fund strategies now make up 25% of risk […]
Jamaica battered by hurricane Beryl, but IBRD catastrophe bond appears safe
Jamaica has been battered by the passage of major hurricane Beryl just off its southern coast. But, for holders of the World Bank facilitated $150 million parametric IBRD CAR Jamaica 2024 catastrophe bond transaction, early analysis of the real-time storm track suggests that noteholders will not face any loss of principal. It’s important to mention here […]
CCRIF renews 10% more parametric coverage. Pays Guatemala $6.4m for rains
The CCRIF SPC (formerly known as the Caribbean Catastrophe Risk Insurance Facility) has seen its members renew their parametric insurance policies for the 2024/2025 policy year, with 10% more in parametric coverage purchased, while also making its first payout of 2024, $6.4 million for Guatemala after heavy rainfall. As we reported early yesterday, the CCRIF […]
City National Rochdale mutual ILW fund sees slight growth to $227.4m
The City National Rochdale Select Strategies Fund, a US mutual insurance-linked securities (ILS) fund focused on investments into industry-loss warranties (ILW’s) and industry-index trigger catastrophe bonds, saw slight growth through the latest quarter of record, ending April 2024 with approximately $227.4 million of net assets. It now puts the ILW and index-triggered reinsurance investment focused […]
Jamaica Minister of Finance highlights risk transfer as hurricane Beryl approaches
With major hurricane Beryl churning across the Caribbean towards Jamaica, the country’s Minister of Finance Dr. Nigel Clarke has highlighted the importance of robust disaster risk financing and responsive parametric risk transfer arrangements that are in-place, including its World Bank catastrophe bond. Hurricane Beryl remains a major and dangerous storm, with Category 5 winds and […]
Cyber catastrophe bond market – room for growth is considerable: Howden
There is “considerable” room for growth in the cyber catastrophe bond market, as cyber insurers and reinsurers get increasingly comfortable with event-based excess-of-loss coverage options and use of quota shares in the cyber reinsurance space reduces, broking group Howden has said. Commenting on the growing cyber insurance market, Howden noted that prospects look strong, helped […]
Catastrophe bond market yield rose in June, ends month at 13.7%
The overall yield of the catastrophe bond market in US dollars rose slightly through June and ended the month at just under 13.7%, reaching levels last seen in August 2023. A consistent trend of spread tightening in the catastrophe bond market had driven yields down into and through the first-quarter of this year. That led […]
World Bank has now facilitated over US $4.8bn in catastrophe bonds
The World Bank has now facilitated and issued over US $4.8 billion in catastrophe bonds across 17 transactions we have covered over the years, with $745 million issued over the course of just a few weeks in 2024 to support Mexico and Jamaica’s disaster risk transfer and financing needs. The most recent catastrophe bonds from […]
Alternative capital hits $110bn mid-year high as reinsurance grows in 2024: Aon
The amount of alternative capital in the reinsurance industry has reached another new high at the middle of 2024, with capital allocated to alternative and insurance-linked securities (ILS) structures now reaching $110 billion, according to Aon. The broker noted catastrophe bond market expansion as a key driver, highlighting some of the milestones passed by the […]
