Despite tightening, cat bond spreads still around 280bps above US high-yield: Twelve Capital
Despite the tightening of catastrophe bond spreads seen through the second-half of 2024 the asset class remains elevated compared to US high-yield bond offerings, with investment manager Twelve Capital estimating cat bond spreads are around 280bps higher at this time. The investment manager said 2024 was “an exceptional year for the asset classes in which […]
Cat bond inflows help expand alternative reinsurance capital to $113bn: Aon
By the end of September this year, the amount of alternative capital in the reinsurance industry had increased by 5% over the nine-months of 2024, to reach another new high of $113 billion, helped by retained earnings and catastrophe bond market inflows, broker Aon has said. Overall, total dedicated reinsurance market capital expanded by almost […]
Munich Re secures Eden Re II reinsurance sidecar at $150m again for 2025
Having begun its Eden Re II Ltd. collateralized reinsurance sidecar placements with the largest Class A tranche of notes since 2019, global reinsurer Munich Re has now added the usual Class B issuance, but this tranche has been placed at just $85.5 million, which is the smallest size for that layer since right back in […]
UCITS catastrophe bond funds average 13.62% return for 2024: Plenum Indices
Catastrophe bond fund strategies in the UCITS format have averaged a 13.62% return for full-year 2024, according to the latest data from the Plenum CAT Bond UCITS Fund Indices. While this is behind the record returns achieved in 2023, it remains historically very high and more than double the previous annual high of 6.28% in 2013. […]
Insurance Authority welcomes Silk Road Re cat bond, sixth under Hong Kong ILS regulations
Hong Kong’s Insurance Authority (IA) has welcomed the recent issuance of the latest and sixth catastrophe bond under its insurance-linked securities (ILS) regulatory regime, saying the US $35 million Silk Road Re Limited cat bond sponsored by Taiping Re reinforces its commitment to the sector. As we’ve been reporting, Taiping Re secured a three-year source of fully-collateralized retrocessional […]
Flood drives 78% of $18.2bn major non-US international cat losses in 2024: CRESTA
The CRESTA organisation, which tracks catastrophe events outside the United States that have generated insurance industry losses of over US $1 billion, has reported the 2024 annual total as reaching US $18.2 billion, of which 78% came from flood events. Aggregate insured losses from non-US catastrophe loss events came in slightly below the long-term average […]
Galapagos Capital gets SUSEP authorisation for SSPE structure to issue ILS in Brazil
Galapagos Capital has now received the expected official authorisation from Brazil’s insurance regulator SUSEP to establish its own Sociedades Seguradoras de Propósito Específico (SSPE), a special purpose reinsurance vehicle that can issue Letra de Risco de Seguro (Insurance Risk Letters), which are insurance-linked securities (ILS). The move puts Galapagos Capital on track to achieve its […]
European System for Natural Catastrophe Risk Management & Re/Insurance
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Galapagos Capital pre-authorised for structure to issue ILS in Brazil
Galapagos Capital, a global investment company headquartered in Brazil that offers a range of investment management, banking and financial services, has received pre-authorisation from the insurance regulator SUSEP to establish an issuer of Letra de Risco de Seguro (Insurance Risk Letters), which are Brazil’s own type of insurance-linked securities (ILS). Galapagos Capital aims to become […]
ILS market M&A consolidation can help attract more institutional capital: Stonybrook
The insurance-linked securities (ILS) market should become more streamlined and professionalised if mergers and acquisitions (M&A) consolidate players, which Stonybrook Capital believes can help in attracting more institutional capital to the sector. Stonybrook Capital, a specialist strategic advisory and investment banking firm focused exclusively on the insurance and reinsurance industry, comments on trends in insurance-linked […]