Archive for May, 2016

A new catastrophe bond has been launched for first time cat bond ceding firm Security First Insurance Company, as it seeks a capital market backed source of collateralised reinsurance cover through a $100m First Coast Re Ltd. (Series 2016-1) cat bond issue.

Global reinsurance firm Munich Re is set to sponsor its largest catastrophe bond ever, as the Queen Street XII Re dac 2016 transaction is now set to complete at $190m in size, securing the reinsurer its largest slice of cat bond investor backed retrocession.

Here are the ten most popular news articles, week ending 15th May 2016, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates.

The Texas Windstorm Insurance Association (TWIA) is set to purchase an additional $1.1 billion of reinsurance coverage for the 2016 hurricane year, from both traditional and fully-collateralized sources, taking its total reinsurance coverage for the year to $2.2 billion.

Florida’s Citizens Property Insurance Corporation has reset its most catastrophe bond, the $300m Everglades Re II Ltd. (Series 2015-1) transaction, at a lower attachment point, reacting to the effects of depopulation of its portfolio and looking ahead to its reinsurance and risk transfer needs.

Reinsurance is likely to shoulder at least 50% of the industry loss from the Fort McMurray area wildfire in Alberta, Canada, as uncertainty surrounding the overall loss estimate suggests a greater impact to reinsurers and also ILS players.

Swedish catastrophe bond and insurance-linked securities (ILS) investment fund manager Entropics Asset Management AB entered into an agreement for its UCITS cat bond fund to be distributed to Swedish bank and insurance group Skandia’s clients.

The likelihood that La Niña will develop during the peak of the 2016 Atlantic and U.S. hurricane season is rising, with the U.S. NOAA now putting the probability that we’ll see La Niña conditions by September at 75%.

Alternative capital and insurance-linked securities (ILS) are set to continue to disrupt the insurance and reinsurance market, according to Chairman of Lloyd’s of London John Nelson, reshaping the industry and continuing to pressure catastrophe lines of business.

Reinsurance firm Munich Re’s Queen Street XII Re dac 2016 catastrophe bond transaction could as much as double in size, with the company raising its target to $150m to $200m for the bond, while at the same time price guidance has been lowered.