Archive for May, 2017

The latest catastrophe bond from U.S. primary insurance company Allstate, the $200 million Sanders Re Ltd. (Series 2017-2) deal, is set to price at the bottom-end of initial coupon guidance making the reinsurance coverage the notes provide particularly efficient, Artemis understands.

Weather risk due to a lack of wind, or resource risk as its known in the sector, is the major threat to wind energy markets and wind farm operators, with the inability to transfer the weather risk adequately often leading to sub-par project performance, according to specialists GCube Underwriting Ltd. (GCube).

The contribution made by total return reinsurance vehicle KaylaRe Ltd. to insurance and reinsurance specialist Enstar is growing, as the strategy begins to scale up offering efficiency benefits across the business for the firm.

The estimate of insurance and reinsurance industry loss due to the impacts of extra-tropical cyclone (or European windstorm) Thomas (which was also known as Doris in the UK) has been increased by 17% to EUR 249 million, by PERILS AG.

The Texas Windstorm Insurance Association’s (TWIA) target for its third catastrophe bond transaction, Alamo Re Ltd. (Series 2017-1), has been lifted while the deal is being marketed, with the insurer now seeking up to $400 million of reinsurance coverage and at keener pricing, as the guidance has now been lowered.

Once again, the prospects for some aggregate reinsurance contracts, ILS deals and even some catastrophe bonds, in particular those which have exposure to U.S. severe thunderstorm risks, are being highlighted as gradually becoming more risky as deductibles are eroded, raising the risk that some could face losses later in the year.

The pricing has been fixed on both tranches of Great American Insurance Group’s second catastrophe bond, the $190 million Riverfront Re Ltd. (Series 2017-1) transaction, with the lower risk notes pricing at the top-end of guidance, while the higher risk tranche priced at the low-end.

The Florida Hurricane Catastrophe Fund (FHCF) is again looking at utilising risk transfer from the reinsurance markets as a source of additional protection for the 2017 hurricane season, with a $1 billion renewal being explored by the Florida State Board of Administration.

Here are the ten most popular news articles, week ending 21st May 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.

Annual returns for catastrophe bonds rose in the year to 31st March 2017, as evidenced by all of Aon Securities insurance-linked securities (ILS) indices reporting higher performance year-on-year.