Archive for April, 2017

Is the insurance-linked securities (ILS) market becoming less transparent, as transactions undertaken using capital market investor capital shift further towards the private and collateralized reinsurance arena, and what does this mean for investors and ceding companies?

The Gator Re Ltd. catastrophe bond transaction has again had its maturity extended even further, we understand, as the time to clarify the full loss and facilitate the pay-out due to sponsor American Strategic Insurance increases.

Here are the ten most popular news articles, week ending 9th April 2017, 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.

Reinsurance company Everest Re’s latest catastrophe bond issuance is set to achieve an upsized $1.25 billion target at the reduced pricing levels reported earlier this week, making the transaction the best value in the reinsurers cat bond sponsorship history.

It’s been suggested that the slowed entry of alternative capital and moderated reserve releases in the global reinsurance market might be stabilising the sector and lead to a flat January 2018 renewal, however recent market dynamics suggest we haven’t seen the end of rate declines.

Florida’s Security First Insurance Company looks set to capitalise on attractive catastrophe bond market issuance conditions with its First Coast Re Ltd. (Series 2017-1), as the target size for the transaction increased while the price guidance has been lowered, we understand.

As expected, Florida’s Citizens Property Insurance Corporation is back in the catastrophe bond market, with a $250 million target for an Everglades Re II Ltd. (Series 2017-1) transaction that looks like it aims to capitalise on the ILS investment market appetite for risk, given its low launch pricing.

Insurance and reinsurance industry losses from severe weather and convective storms in the United States are estimated to be more than $2 billion in March 2017, while the insurance industry loss from Australia’s cyclone Debbie is minimally put at US$310 million, according to Aon Benfield.

Louisiana Citizens Property Insurance Corporation’s latest catastrophe bond, the $100 million Pelican IV Re Ltd. (Series 2017-1) transaction, is set to achieve pricing at the bottom end of already reduced guidance, reflecting a 25% drop in the coupon during marketing.

The World Bank is working with the Jamaican government and general insurance companies to develop an adequate and effective disaster risk financing strategy in the region, amidst concerns CCRIF SPC coverage is not sufficient alone to support the country in the face of major losses.