Puerto Rico government seeking Parametric Re cat bond protection
The government of Puerto Rico is seeking $75 million in parametric insurance protection against the financial impacts of named storms and earthquakes from the capital markets, through a new Puerto Rico Parametric Re Ltd. (Series 2024-1) catastrophe bond transaction, Artemis has learned. This first Puerto Rico Parametric Re catastrophe bond is particularly notable as the first […]
SCOR secures 40% upsized $175m Atlas Capital 2024-1 cat bond
French global reinsurance company SCOR has now successfully upsized its latest catastrophe bond by 40% to secure $175 million of retrocession from the Atlas Capital DAC (Series 2024-1) deal, while the pricing settled just above initial guidance, showing the risk adjustments made appear to have had the desired effect. SCOR ventured back to the catastrophe bond […]
ILS allocations can generate attractive returns despite changing climate: LGT
Even in a state of increased event activity driven by a changing climate, allocating to insurance-linked strategies (ILS) can generate attractive returns for investors, according to a whitepaper from LGT ILS Partners, the specialist dedicated ILS investment unit of the private bank and asset manager LGT Capital Partners. LGT ILS Partners’ paper observed that, in […]
Investor interest in ILS could be stronger than expected: Moody’s
Thanks to the very strong earnings generated by capital deployed into the reinsurance market last year and an expectation that strong earnings can persist through full-year 2024, analysts at Moody’s Investors Service believe investor interest in insurance-linked securities (ILS) could prove to be stronger than had been expected. Moody’s said that pricing of property catastrophe […]
Aon reveals cyber attack/data breach as top risk for financial institutions
Aon, a global insurance and reinsurance broker, has revealed that cyber attack/data breach ranks first among the top business risks confronting the financial institutions industry. This insight is derived from Aon’s 2023 Global Risk Management Survey. The survey also identifies regulatory/legislative changes and economic slowdown/slow recovery as the next most critical risks facing financial institutions […]
144A catastrophe bond issuance will set new H1 record, already tracking to $11.4bn+
The market for 144A catastrophe bonds is on-track to set a stunning new issuance record for the first-half of the year, with more than $11.4 billion of new cat bonds already lined up to be issued during H1 2024, data from Artemis’ Deal Directory shows. As of today, there are almost $9.3 billion of Rule 144A […]
Mexico “setting the standard” with use of World Bank catastrophe bonds
With the successful issuance of the $175 million IBRD CAR Mexico 2024 (Pacific) named storm catastrophe bond, on the heels of the $420 million IBRD CAR Mexico 2024 that provides Atlantic named storm and earthquake protection, Mexico now has $110 million more in disaster risk financing to support its resilience, Héctor Santana Suárez of the Ministry of Finance […]
ILS to play a crucial capital role to support cyber market growth: Neuberger Berman
With the cyber insurance market size projected to increase in the near future, members of the Neuberger Berman ILS team have said that insurance-linked securities (ILS) will “likely play a crucial role” in providing additional capital to support said growth. Citing a survey from PwC, Neuberger Berman’s Callum O’Rourke, Vice President, Insurance-Linked Strategies and George […]
SCOR seeks $125m Atlas Capital 2024-1 multi-peril retro cat bond
France-headquartered global reinsurance company SCOR is back in the catastrophe bond market in search of more peak catastrophe peril retrocession, looking to secure $125 million or more in North America focused coverage from an Atlas Capital DAC (Series 2024-1) issuance. SCOR last sponsored a catastrophe bond one year ago, from which it secured $75 million in […]
Catastrophe bond market yield jumps 7% in April, to reach 12.8%
The total yield of the catastrophe bond market in US dollars has risen by roughly 7% during the month of April, to reach a level of 12.8%, with slightly higher collateral yields plus an 11.5% recovery in insurance risk spreads the key drivers. You can analyse this in our chart that displays the yield of the catastrophe bond […]