Cat bond investments post-loss recovery period impressive: Plenum
The relatively short time taken for catastrophe bond investments to recover after loss events and crises affecting global markets has been impressive throughout the sector’s history, with cat bonds exhibiting a tendency to recover from draw-downs much faster than other asset classes. Hurricane Ian is the latest example, where the catastrophe bond market has already […]
Twelve Capital lifts ILS assets 11% to $3.1bn in Q1 2023
Catastrophe bond, insurance-linked securities (ILS) and reinsurance investment manager Twelve Capital has grown its asset base through the first-quarter of 2023, reaching a new level of $4.2 billion of firm-wide assets under management. Given the firm invests across a number of areas of the insurance and reinsurance balance-sheet, including debt and equities, as well as […]
ECB & EIOPA call for EU cat bond issuance platform
A new paper from the European Central Bank (ECB) and the European Insurance and Occupational Pensions Authority (EIOPA) highlights the potential for increased use of catastrophe bonds to support the overall supply of catastrophe insurance across the European Union (EU), as climate change threatens to widen the protection gap. According to the joint discussion paper, […]
ESMA said not in discussion on cat bond eligibility for UCITS funds
For a few weeks now we’ve been hearing rumours and receiving messages from contacts related to the fact the European Securities & Markets Authority (ESMA), a financial regulator, had restarted an exploration of catastrophe bonds and whether they should be an eligible asset for UCITS investment funds. Previously, the European Securities & Markets Authority (ESMA), […]
Singapore extends ILS Grant Scheme three years to end 2025: MAS
The insurance-linked securities (ILS) grant scheme in Singapore has been a significant help in the country attracting catastrophe bonds and other ILS activity and it has now been extended by a further three years, to run until the end of 2025. Singapore began its focus on insurance-linked securities (ILS) as a business opportunity around 2016, […]
CEA secures upsized $200m Ursa Re 2023-1 cat bond at 10% avg price discount
The California Earthquake Authority (CEA) has now secured and priced its new Ursa Re Ltd. (Series 2023-1) catastrophe bond to provide it an upsized $200 million of reinsurance, while on average the spreads settled around 10% below the initial mid-point of guidance. The California Earthquake Authority (CEA) returned to the catastrophe bond market in late March, […]
Industry loss warranty (ILW) rates-on-line soften from highs
The industry loss warranty (ILW) market has softened somewhat, seemingly in-line with the catastrophe bond market, with what were record high ILW rates-on-line now coming in on average roughly 12% lower for the second-quarter of 2022, according to our sources. We’ve updated our industry-loss warranty (ILW) pricing data set using insights gathered from a range of […]
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 […]