Catastrophe bonds and insurance-linked securities news

The latest catastrophe bond news from Artemis. Covering the intersection of reinsurance and risk capital markets. A chronological archive of all of our cat bond news stories. For the latest news and full coverage visit the homepage.

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ILS, an asset class whose tailwinds are not economy-dependent

Regular readers will know that we're proponents of investing in insurance-linked securities (ILS) and reinsurance linked assets, recognising the beneficial features of the ILS asset class and what it can offer to a sophisticated institutional investor.Among these are, of course, the relatively stable returns that can be achieved over the read the full article →

Parametric (flood & surge) cat bonds can benefit (mortgage) investors

Investors and funds with exposure to mortgage risks are carrying in some cases significant amounts of flood and storm surge risk exposure that is not covered by insurance and has not been transferred, presenting a potential opportunity for parametric risk transfer structures and perhaps catastrophe bonds or ILS.A landmark catastrophe read the full article →

TWIA hits $2.1bn reinsurance renewal target, thanks to upsized cat bond

The Texas Windstorm Insurance Association (TWIA) has successfully secured the $2.1 billion of reinsurance protection it was targeting for the 2020 storm season, with its new catastrophe bond and its doubling in size a key piece of the renewal for the residual market insurer.As we explained before, TWIA had been read the full article →

Florida Citizens pays 20% more risk-adjusted, for 53% smaller renewal

Florida’s Citizens Property Insurance Corporation experienced a challenging reinsurance renewal overall it seems, resulting in the insurer of last resort buying significantly less coverage than had been planned and paying 20% more, on a gross risk adjusted basis than the prior year.Florida Citizens had originally been hoping to purchase as read the full article →

TotusRe proposes multi-peril & pandemic public/private risk transfer structure

TotusRe is proposing the use of a cell insurance structure, alongside public and private market participation and the use of retrocessional reinsurance, as a solution to cover multiple risks of national importance, including pandemics.TotusRe has been borne out of the collaboration of Liz Foster, Non-Executive Director of The Society of read the full article →

Arch tried for record sized Bellemeade Re mortgage ILS, but pulled it

Arch Capital Group, the Bermuda headquartered specialist insurance and reinsurance underwriter, had tried to come back to the insurance-linked securities (ILS) market with a new Bellemeade Re 2020-1 Ltd. issuance of mortgage insurance-linked notes, a deal that would have been the largest ever example of a mortgage ILS issuance.But we read the full article →

Plenum launches UCITS fund with cat bond & insurance debt focus

Plenum Investments AG, the Zurich based specialist insurance-linked securities (ILS) and catastrophe bond investment manager, has launched the Plenum Insurance Capital Fund, a UCITS ILS fund that will allocate to both catastrophe risks and subordinated insurance debt instruments.The move follows a recent announcement of senior hires at Plenum Investments with read the full article →

Covid-19 BI markdowns drive private ILS funds to April decline: ILS Advisers

Markdowns due to potential business interruption claims from the Covid-19 pandemic caused some private ILS or collateralised reinsurance funds to decline during the month of April, while pure catastrophe bonds outperformed, ILS Advisers said today.April 2020 saw the average ILS fund return drop to a negative -0.18%, according to the read the full article →

Achmea seeks $90m Windmill II Re cat bond to renew & upsize coverage

Dutch headquartered European market focused insurance group Achmea has returned to the catastrophe bond market to sponsor a roughly $90 million Windmill II Re DAC (2020) transaction, which will be the companies third cat bond transaction.The Windmill II Re DAC transaction is being issued using a new Ireland domiciled special read the full article →

Coronavirus compounds hurricane season challenges in 2020: Fitch

The continuation of the Covid-19 coronavirus pandemic into the 2020 Atlantic hurricane season is set to compound challenges for insurance, reinsurance and ILS capacity providers this year, according to Fitch Ratings.The coronavirus outbreak and resulting lockdown, then slow shift back towards a new normal, is set to exacerbate the challenges read the full article →