Archive for April, 2019

Catastrophe bond and insurance-linked securities (ILS) premium rates can now be considered to be in a hard market, making now a good time to invest in the asset class, according to analysis from ILS focused consultancy Lane Financial LLC.

Radian Guaranty has returned to the capital markets for its second mortgage insurance-linked securities (ILS) deal, marketing a $562 million Eagle Re 2019-1 Ltd. transaction in search of reinsurance backing from the capital markets.

The announcement that the first French domiciled collateralised reinsurance sidecar vehicle has been successfully structured, capitalised by investors and launched has captured the imagination of some in the insurance-linked securities (ILS) sector.

Both tranches of FEMA’s second flood catastrophe bond are set to price at the top-end of initial guidance, as ILS investors demand a higher level of return from the $300 million FloodSmart Re Ltd. (Series 2019-1) cat bond.

Global insurance and reinsurance losses from natural catastrophes reached $76 billion in 2018, the fourth highest in reinsurance firm Swiss Re’s sigma records.

Severe flooding and thunderstorms across the United States drove an estimated $1.3 billion or more of losses that will fall to insurance and reinsurance interests, according to broker Aon.

Increasing industry and cedant loss expectations for typhoon Jebi have resulted in another over 50% decline in secondary pricing for the Mitsui Sumitomo Insurance sponsored $200 million catastrophe bond Akibare Re Ltd. (Series 2016-1).

The World Bank is targeting the development of a second iteration of the Pandemic Emergency Financing Facility, an improved PEF 2.0 as it is being called, which it expects to be marketed around May 2020, prior to the maturing of the first transaction.

The 2019 Atlantic hurricane season could see as many as 7 hurricanes according to forecaster Climate Forecast Applications Network (CFAN), who expects that El Niño conditions will weaken and could transition to ENSO neutral by peak hurricane season this year.

Insurance-linked securities (ILS) and reinsurance linked investment funds were once again hit by loss creep in February 2019, causing the group to fall to an average return of -0.05% for the month.