UCITS cat bond fund index only fell 0.42% on hurricane Milton
It’s now clear that catastrophe bond funds fell far less than the market benchmark on the first pricing after hurricane Milton, with the Plenum CAT Bond UCITS Fund Indices only falling 0.42% at Friday October 11th and the majority of cat bond funds absorbing the initial mark-to-market impacts of the storm within two weeks of returns. […]
Alternative capital a material and critical reinsurance partner through crises: Rapin, Nephila
In comments made around Guy Carpenter’s Baden-Baden Reinsurance Symposium event, Maria Rapin, the CEO of Nephila Climate, the climate and weather focused arm of insurance-linked securities (ILS) specialist Nephila Capital, highlighted that alternative capital is a long-term partner for reinsurance that has been well-tested through catastrophes and crises. This year’s theme of the reinsurance broker’s […]
Mutual cat bond and ILS funds correct in post-Milton NAV adjustments
Having shown a divergence in manager strategies as NAVs moved in different directions at times and by different amounts as hurricane Milton approached, the US mutual investment funds that allocate to catastrophe bonds and other insurance-linked securities (ILS) diverged again at pricing on Friday, but have since stabilised having incorporated post-landfall net asset value adjustments. […]
Cat bond market index falls 1.34% on hurricane Milton. US wind down 3.64%
Responding to the potential impact of losses from hurricane Milton, the catastrophe bond market has fallen by just 1.34% at the end of week pricing of the index calculated by Swiss Re Capital Markets, while the US wind specific version of the cat bond index fell by only 3.64%. It’s a stark contrast to how […]
Cat bond market yield declines again on accelerated seasonality, lower collateral contribution
In the month of September 2024, the overall yield of the catastrophe bond market declined further as the effects of hurricane seasonality accelerated, while also adding to the decline is a gradual reduction in the cat bond market collateral yield, as lower interest rates begin to have an effect. As we’ve explained before, US hurricane risk […]
Beazley adds $290m cyber ILW to its $510m cyber cat bonds, in $1bn cyber cat coverage
While it has been growing its cyber underwriting business, specialist insurer Beazley has also implemented a robust hedging strategy to control the tail, recently securing a $290 million cyber industry loss warranty (ILW) cover and securing its third PoleStar Re cyber catastrophe bond. As Artemis reported a few weeks ago, Beazley secured $210 million in cyber […]
ILS market has “meaningful growth opportunity” to $200bn by 2032: Jefferies
The catastrophe bond and insurance-linked securities (ILS) market has a “meaningful growth opportunity” ahead of it, with a near doubling of the ILS market to as much as $200 billion in capital possible by the year 2032, according to analysts at investment bank Jefferies. The analysts say that the rebound in issuance and expansion of […]
Cat bond market offers attractive entry point for investors: Neuberger Berman’s Burdick
After posting record levels of issuance so far in 2024, the catastrophe bond market appears poised to offer an attractive entry point for investors, according to Jack Burdick, an Associate at investment manager Neuberger Berman. A record $8.4 billion of catastrophe bond and related insurance-linked securities (ILS) issuance occurred in the second quarter of 2024, […]
Reinsurance and ILS a compelling income opportunity: US Bank
Wealth managers at US Bank, the fifth-largest commercial bank in the United States, have highlighted reinsurance and insurance-linked securities (ILS) as diversifying drivers of income for their clients. Within US Bank’s weather, commercial and corporate business segments, it offers investment advice and management for clients, ranging from retail, through high-net worth, to large corporate allocators. […]
China’s State Council sees cat bonds as measure to strengthen insurance system
China is aiming to strengthen its insurance system, with a particular focus on the impacts of weather and natural disasters and its State Council, a key ruling body, has cited catastrophe bonds again, as one measure that can assist. Over the years, China’s State Council has repeatedly cited innovative risk transfer, alternative reinsurance capital and […]