Cat bond spreads adequately compensate for hurricane risk: Twelve Capital
Investment manager Twelve Capital feels that the spread being taken when investing into catastrophe bonds compensates for the shorter-term risk being taken from the hurricane peril, noting that pricing of cat bonds is based on a longer-term view than just a single hurricane season. With hurricane forecasts suggesting a hyperactive 2024 Atlantic storm season with potentially elevated […]
Industry-loss cat bond spread decline necessitates portfolio rethink: Icosa
Spreads for industry-loss index trigger catastrophe bond instruments have declined or tightened so much in recent months that indemnity cat bonds now look relatively more attractive for the first time, which necessitates a rethink about how cat bond portfolios are constructed, according to Florian Steiger, of Icosa Investments. Steiger formed Icosa Investments as a new […]
As alternative capital hits $108bn record-high, Aon forecasts further growth
According to Aon Securities, the insurance-linked securities (ILS) and investment banking arm of Aon’s Reinsurance Solutions, the amount of alternative capital in the reinsurance industry ended 2023 at a new high of $108 billion, a figure the broker expects to grow as interest investor is growing across the range of ILS instruments. Alternative capital levels […]
Berenberg adds catastrophe bonds to OTC fixed income offering
Berenberg, the private banking, investment banking, asset and wealth management specialist, will offer catastrophe bond trading over-the-counter (OTC) within its fixed income division, responding to what it sees as growing client demand for access to cat bond investments. Trading catastrophe bonds in the secondary market is a critical feature for the liquid insurance-linked securities (ILS) […]
Tokio Marine is first Japanese cat bond sponsor to use sustainable development bond
Tokio Marine Holdings, Inc., through its subsidiary Tokio Marine & Nichido Fire Insurance Co. Ltd., has become the first Japanese insurer to make use of a SOFR-based World Bank Sustainable Development Bond as a permitted investment within its latest catastrophe bond issuance, the company highlighted today. As Artemis has been reporting, Tokio Marine has been […]
ILW market activity rising, as preparations for hurricane season begin
According to Artemis’ sources, activity in the industry-loss warranty (ILW) market has increased in the last few weeks, as reinsurance and insurance-linked securities (ILS) markets prepare for what is anticipated to be an active 2024 Atlantic hurricane season. As we’ve reported, long-range seasonal forecasts for Atlantic hurricanes have suggested a challenging storm season could be ahead. […]
California to expand use of catastrophe models to wildfire, terrorism, flood: Lara
As part of its goal to ward off a developing insurance crisis in California that has seen major companies pull-back on underwriting property insurance there, or exit the state entirely, Insurance Commissioner Ricardo Lara has announced regulation to allow for an expanded use of catastrophe models to help insurers operate there more sustainably. “Currently, the […]
CEA’s reinsurance tower reached $9.1bn pre-1/1, risk transfer costs up 15%
The California Earthquake Authority (CEA) entered the January reinsurance renewals with almost one billion dollars more in risk transfer than a year earlier, as the group reached December 31st 2023 with $9.1 billion of protection in-force. A year earlier, the CEA’s reinsurance tower had shrunk to around $8.2 billion after the January 2023 renewal, significantly down […]
Texas Windstorm (TWIA) targets $600m Alamo Re catastrophe bond
The Texas Windstorm Insurance Association (TWIA), the residual market property insurer for the State of Texas, has returned to the catastrophe bond market seeking to place a large $600 million Alamo Re Ltd. (Series 2024-1) issuance as it looks to build-out its reinsurance for the years ahead with the help of the capital markets, Artemis can […]
Mexico expected to renew Pacific coast hurricane cat bond after Otis resolution
We reported earlier this week that the Government of Mexico is back in the catastrophe bond market with a new World Bank facilitated IBRD CAR Mexico 2024 parametric catastrophe bond. That deal is missing one of its usual components, a Pacific hurricane tranche, but sources tell us to expect one, once any recovery from hurricane Otis […]