industry index

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.

Nephila Capital, the insurance-linked securities (ILS) investment manager owned by Markel, is in the catastrophe bond market seeking $100 million or more in aggregate industry-loss index based retro reinsurance for its flagship Lloyd’s syndicate 2357, through an Atela Re Ltd. (Series 2024-1) cat bond issuance.

Catastrophe bond transactions can utilise a range of different types of triggers as points of measure to define whether they have experienced a loss or not. The types of triggers used by cat bond deals have changed over the years the market has existed as some come into favour and others receive less attention. A […]