Archive for October, 2024

Insurer USAA has returned for what will be the 44th catastrophe bond issuance we have tracked from the company, initially targeting $325 million of occurrence reinsurance protection from a new Residential Reinsurance 2024 Limited (Series 2024-2) deal, Artemis has learned.

The Ambassador US mutual catastrophe bond fund strategy operated by advisor Embassy Asset Management has continued to attract inflows from investors through the Atlantic hurricane season, reaching more than $329 million in assets under management (AUM) this month.

According to executives at the World Bank, artificial intelligence (AI) based improvements to catastrophe risk modelling could in future allow more transactions to be brought to the catastrophe bond market, with less lead time and potentially wider investor acceptance.

Twelve Capital, the Zurich-headquartered insurance-linked securities (ILS), catastrophe bond and reinsurance investment manager, has reached a new milestone in terms of third-party assets under management, surpassing $4 billion for the very first time across its cat bond and ILS portfolios.

African Risk Capacity Limited (ARC Ltd.), the financial affiliate and parametric insurance underwriting entity of the African Risk Capacity (ARC) Group, is continuing to expand its risk pool, with the latest addition being Ghana, whose government has just purchased its first sovereign parametric drought insurance policy.

Recent Atlantic hurricane activity is likely to only drive “limited” losses to top-layer insurance-linked securities (ILS) strategies, such as catastrophe bonds, but will contribute to keeping spreads in the ILS asset class “historically high”, Schroders Capital’s Nils Rode has said.

The CEO of Heritage Insurance Holdings, Inc., the Florida headquartered property and casualty insurer, has warned that its gross losses from recent hurricane Milton could reach the third layer of its reinsurance tower, suggesting a reasonable amount of risk capital will support its claims from the storm.

African Risk Capacity Ltd. has provided parametric insurance and Munich Re has provided parametric reinsurance to support an innovative disaster-adapted loan offering from the West African Development Bank (BOAD).

At MS Amlin, there is an ambition to grow and broaden the scope of the innovative Phoenix reinsurance sidecar series of deals, and William Ho, the CEO of MS Amlin Asia Pacific, told us about the opportunity this presents to investors.

Global reinsurance giant Munich Re has pre-announced an expectation of around €500 million in losses from September’s hurricane Helene, but while the reinsurer expects significant additional claims expenditure from hurricane Milton in Q4, the company is still forecasting it will beat its full-year profit target.