CEA targets $200m of quake reinsurance with Ursa Re 2025-1 catastrophe bond
The California Earthquake Authority (CEA) has returned to the catastrophe bond market to sponsor its first issuance since late 2023, seeking $200 million or more in multi-year collateralized California earthquake reinsurance protection from the capital markets through this Ursa Re Ltd. (Series 2025-1) issuance. The CEA last sponsored a catastrophe bond in December 2023 and in that […]
ILS market remains attractive and should deliver strong returns in 2025: Cambridge Associates
According to Joseph Tolen, Senior Investment Director in the Credit Investment Group at Cambridge Associates, the insurance-linked securities (ILS) market “continues to be attractive and should deliver strong returns in 2025.” In a recent report for Cambridge Associates, Tolen wrote that, “demand for additional catastrophe coverage from insurers has kept the market firm, which has […]
Amundi US cat bond fund returned 14.27% in year to Oct 31st, AUM growth continues
Amundi US Investment Management has reported that its Pioneer CAT Bond Fund strategy delivered a 14.27% return in the year to October 31st 2024, while assets under management in the strategy have continued to expand through the end of the year. Back in late November, we had reported that Amundi US’ most recently launched dedicated […]
CEA mulls second-event tower, with potential role for reinsurance / cat bonds
The California Earthquake Authority (CEA) is discussing the need for either a pre-funded subsequent or second-event funding tower (with risk transfer and reinsurance perhaps a part of it), or the infrastructure for one, that would support its functions after a significant earthquake loss that depletes its claims paying ability. Recognising the very real risk that […]
Alternative capital can provide wildfire capacity, but pricing a sticking point: Morningstar DBRS
With wildfires becoming a more recurring peril for the California property insurance market, alternative capital may be available to provide coverage, including through multiple-peril alternative reinsurance capital instruments, however “pricing is likely to remain a sticking point” according to analysts at Morningstar DBRS. In a new report, Morningstar DBRS has revealed that the on-going wildfires […]
UCITS cat bond funds grow 26% in 2024, end year with $13.8bn under management
Catastrophe bond funds in the UCITS format continued their strong growth through the end of last year, reaching a new high of just over $13.8 billion in cat bond assets under management, which represents very impressive 26% growth through 2024. In the final quarter of 2024, these UCITS structured catastrophe bond investment funds added almost […]
Swiss Re seeks $150m wind / quake retrocession from Matterhorn Re 2025-1 cat bond
Global reinsurance firm Swiss Re is back in the catastrophe bond market seeking $150 million or more in North American earthquake and named storm retrocessional protection from capital market investors, through a Matterhorn Re Ltd. (Series 2025-1) transaction. This issuance will be the twelfth takedown under Swiss Re’s Matterhorn Re catastrophe bond program and adds to the […]
Despite tightening, cat bond spreads still around 280bps above US high-yield: Twelve Capital
Despite the tightening of catastrophe bond spreads seen through the second-half of 2024 the asset class remains elevated compared to US high-yield bond offerings, with investment manager Twelve Capital estimating cat bond spreads are around 280bps higher at this time. The investment manager said 2024 was “an exceptional year for the asset classes in which […]
Cat bond inflows help expand alternative reinsurance capital to $113bn: Aon
By the end of September this year, the amount of alternative capital in the reinsurance industry had increased by 5% over the nine-months of 2024, to reach another new high of $113 billion, helped by retained earnings and catastrophe bond market inflows, broker Aon has said. Overall, total dedicated reinsurance market capital expanded by almost […]
Vibrant ILS market with significant deal flow expected in early 2025: Aon Securities
Aon Securities, the investment banking and insurance-linked securities (ILS) specialist arm of the insurance and reinsurance broker, is anticipating a strong start to catastrophe bond and ILS market activity in 2025, with a “vibrant” market and plenty of deal flow forecasted. As we reported earlier, Aon estimates that alternative capital in reinsurance grew by 5% over […]