Willow Re has officially defaulted on it’s payment which was due on the 2nd February. They had a 5 day grace period to come up with the payment but now A.M. Best reports that they haven’t managed to come up with the full interest payment due. Willow Re intends to pay about 95% of the […]
It’s become apparent that Allstate‘s Willow Re catastrophe bond has been downgraded again by Standard & Poor’s due to a notice from Allstate that it is going to default on it’s scheduled interest payment. The rating on Willow Re Ltd.’s Class B 2007-1 series notes has been downgraded to ‘D’ from ‘CC’. An interest payment […]
Allstate (NYSE:ALL) have closed their second catastrophe bond deal under the Cayman Islands domiciled Willow Re. The $250m deal provides Allstate with 3 years protection against windstorms in Texas. The deal is structured such that it would be triggered based on industry losses. Last year they issued $250m through Willow Re to cover themselves from […]
We understand from sources in the insurance-linked securities market that U.S. insurer Allstate’s latest catastrophe bond deal, Sanders Re Ltd. (Series 2013-1), has upsized during the marketing of the deal. At the same time the price guidance on both tranches of notes being issued has dropped. Sanders Re is Allstate’s third trip to the cat […]
As expected after the insurer withdrew around $1 billion of limit from the traditional reinsurance market as it restructured its catastrophe programme to take advantage of alternative reinsurance capacity and the capital markets, U.S. insurer Allstate has launched a new $250m catastrophe bond. The new cat bond from Allstate, Sanders Re Ltd. (Series 2013-1), is […]
The rate of catastrophe bond maturities has picked up with five transactions maturing in the last few days and another two due to mature before the end of the month. With close to $2.4 billion of cat bonds due to mature by the end of this quarter there is plenty of excess capital which is […]
Having written in the last week about the volume of catastrophe bonds which are listed on the stock exchanges in Bermuda and the Cayman Islands I thought it would be a good idea to list them out by domicile for your information. We are going to include this information into a new catastrophe bond Deal […]
AIR Worldwide has announced that it has now modeled the risks on over $10b worth of catastrophe bonds since the market took off in 1996. They also claim to have modeled the risks on over 56% of the deals struck since 2007. During 2008 they provided services to 70% of the catastrophe bond capital issued […]
The Ajax Re Ltd catastrophe bond from Aspen Insurance is looking like it is going to default in the coming days due to it’s inability to pay an upcoming interest payment. Ajax Re is one of the bonds which used Lehman Brothers as a total-return swap counterparty and has since been watched closely after Lehman […]
I’ve written a number of times about the relative performance of cat bonds compared to other investments but it is only in the past couple of months that the difference in performance is really becoming apparent. Despite all the negative press about securitization, reports of large catastrophe losses, discussion of the failure of Lehman Brothers […]
