Archive for June, 2023

Two tranches of the Caelus Re catastrophe bonds sponsored by US primary insurance giant Nationwide Mutual Insurance Company that have been considered at-risk of facing a complete loss since 2021 have now had its maturity date extended by one month, as the carrier looks to finalise its reinsurance recoveries from prior years, we understand.

Raising capital into collateralized reinsurance investment fund opportunities continues to be a much slower segment of the insurance-linked securities (ILS) market than catastrophe bonds, which is buoying hopes the hard reinsurance market could be prolonged well into 2024.

BMS Re, the reinsurance arm of the international broking group, has hired former Nephila Capital employee Brendan O’Brien to further build out its Bermuda reinsurance and retro offering, as well as to support its secondary catastrophe bond trading plans.

Randolph Re, insurance and reinsurance broker Aon’s private catastrophe bond issuance and placement platform, has completed a EUR 100 million private cat bond transaction, Randolph Re (Groupama), for Paris headquartered insurer Groupama.

Broking giant Marsh has noted that capacity is increasingly an issue and alongside losses this has served to drive US property insurance rate increases higher in the first-quarter of 2023.

The City of Zurich Pension Fund has continued to increase its allocation to the insurance-linked securities (ILS) asset class in 2022, with the total reaching over US $700 million by the end of the year.

Vermont Mutual Insurance Company looks set to secure its latest catastrophe bond at reduced pricing, as the spread for the new $100 million Baldwin Re Ltd. (Series 2023-1) cat bond issuance has now been reduced to the low-end of initial guidance.

Here are the ten most popular news articles, week ending June 18th 2023, 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 or get our email alerts for every article we publish.

Participants in the global insurance and reinsurance industry need to consider alternative capital and insurance-linked securities (ILS) as a “core part of their capital management strategy” to deliver on promises of plugging protection gaps, enhance relevance to clients and make their reinsurance purchases more efficient, consultants at McKinsey have said.

Amwins Global Risks, the international arm of insurance origination and distribution specialist Amwins, has launched a new follow-form facility with lead capacity backing from Beazley’s third-party capital backed Smart Tracker syndicate 5623 at Lloyd’s.