TWIA gets new Alamo Re cat bond 100% upsized at $500m, with 7% price reduction
The Texas Windstorm Insurance Association (TWIA) has now secured double its initial target for reinsurance from its new 144a Alamo Re Ltd. (Series 2023-1) catastrophe bond, with the issuance having its pricing fixed at $500 million in size, with a spread around 7% lower than the mid-point of initial guidance. It’s a strong result in the […]
Cat bonds – the only true diversifier: Banque Bonhôte & Cie
Catastrophe bonds, as an asset class exhibiting the rare property of price moves that are independent of broader financial markets, can be considered “the only true source of diversification,” according to Swiss private bank Banque Bonhôte & Cie. Banque Bonhôte & Cie is bullish on the potential for catastrophe bonds to sit as part of […]
ILS funds continue strong start to 2023, with best returns since 2007
Insurance-linked securities (ILS) funds delivered another strong month of performance in February 2023, with every ILS fund represented in the Eurekahedge ILS Advisers Index reporting positive returns for the month, but with catastrophe bond funds leading the way. February 2023 saw the average return of ILS funds tracked by the Index reach 0.82%. Historically, that is […]
40th Residential Re cat bond launches for USAA with $200m target
USAA, perhaps the most consistent of catastrophe bond sponsors, at least of any primary company, is back in the cat bond market with what will be its 40th deal under the Residential Re name, seeking $200 million or more in multi-peril reinsurance protection from a Residential Reinsurance 2023 Limited (Series 2023-1) issuance. USAA has been sponsoring […]
Significant scope for public sector cat bond market development, says DBRS Morningstar
For low and middle income countries with an elevated exposure to natural disasters, catastrophe bonds can be a useful tool for financial planning, but the public sector side of the market needs to grow in order for governments to fully realise the potential benefits, according to analysts at DBRS Morningstar. The potential fiscal cost of […]
Catastrophe bond spreads hit all-time-high in 2023
The average spread across newly issued catastrophe bonds has now reached an all-time-high in 2023, as data recorded by Artemis now shows that both the average coupon and the average spread above expected loss of cat bonds entered in the Artemis Deal Directory this year are at record levels. The good news for catastrophe bond […]
Hong Kong to extend ILS Grant Scheme by two years
The government of Hong Kong is proposing a two year extension to its Pilot ILS Grant Scheme, which it hopes will help to continue the development of its insurance‑linked securities (ILS) offering and attract more issuers to locate catastrophe bond and ILS arrangements there. This was announced by Hong Kong’s Financial Secretary the Hon Paul […]
Hong Kong to extend ILS Grant Scheme by two years
The government of Hong Kong is proposing a two year extension to its Pilot ILS Grant Scheme, which it hopes will help to continue the development of its insurance‑linked securities (ILS) offering and attract more issuers to locate catastrophe bond and ILS arrangements there. This was announced by Hong Kong’s Financial Secretary the Hon Paul […]
Chile seeks $150m parametric quake cat bond via the World Bank’s IBRD
The Republic of Chile is aiming to secure $150 million of parametric earthquake disaster insurance protection through a new IBRD – Chile 2023 transaction that is being issued by the World Bank’s multilateral development bank, the International Bank for Reconstruction and Development (IBRD). The IBRD – Chile 2023 catastrophe bond is the first issuance to come to […]
Chile seeks $150m parametric quake cat bond via the World Bank’s IBRD
The Republic of Chile is aiming to secure $150 million of parametric earthquake disaster insurance protection through a new IBRD – Chile 2023 transaction that is being issued by the World Bank’s multilateral development bank, the International Bank for Reconstruction and Development (IBRD). The IBRD – Chile 2023 catastrophe bond is the first issuance to come to […]