Archive for May, 2014

The most prolific sponsor of catastrophe bonds is back with its regular new issue timed for its mid-year reinsurance renewal. USAA has launched a Residential Reinsurance 2014 Ltd. (Series 2014-1) cat bond and the transaction features some new perils for the ILS market.

U.S. primary insurer Allstate is returning, as was expected, to the catastrophe bond market for the issuance of another tranche of notes under its Sanders Re vehicle. Sanders Re Ltd. (Series 2014-2) seeks $150m of indemnity protection for two Allstate subsidiaries.

Zenkyoren, the Japanese National Mutual Insurance Federation of Agricultural Cooperatives and largest single buyer of catastrophe reinsurance coverage globally, is back with a new $200m Japanese earthquake catastrophe bond, Nakama Re Ltd. (Series 2014-1).

PERILS AG, the Zurich-based provider of industry-wide European catastrophe insurance exposure, industry loss data and indices, has published a second loss estimate for European windstorm Tini, increasing the initial estimate slightly from €245m to €253m.

The expectation among senior figures in the insurance linked securities (ILS) and insurance or reinsurance linked investments space is that more institutional investors will allocate to the asset class as the reinsurance capacity it provides grows, according to a new report.

A new catastrophe bond has launched bringing some rare Japanese typhoon risk to the insurance-linked securities (ILS) market. Aozora Re Ltd. (Series 2014-1) looks set to bring at least $100m of this peril to market on behalf of two Japanese primary insurer sponsors.

Here are the ten most popular news articles, week ending 11th May 2014, on catastrophe bonds, reinsurance capital and related risk transfer topics, from the last seven days on Artemis. To ensure you never miss a thing  subscribe to the weekly Artemis email newsletter updates.

Last year investment bank Goldman Sachs highlighted alternative capital in reinsurance as a key disruptive theme to watch in business today. This year banking and investments giant Citi Group has highlighted insurance securitization as an important disruptive innovation.

The April 18th earthquake in Mexico’s Guerrero state, which Artemis wrote about at the time as the quake was very close to hitting the parametric trigger of the MultiCat Mexico Ltd. (Series 2012-1) catastrophe bond did result in an event notice from the ceding reinsurer.

Costas Miranthis, President and CEO of Bermudian reinsurance firm PartnerRe, said that demand for traditional reinsurance capacity is not suffering in the face of increased competition from alternative capital, rather the key impact has been on pricing.