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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IAG’s Orchard catastrophe bond “fully exhausted” by bushfires

Australian primary insurance group IAG has revealed that its Orchard ILS Pte Ltd catastrophe bond was triggered and then fully exhausted by claims suffered from the severe bushfire season in the country. The Orchard ILS catastrophe bond was the first to be sponsored Insurance Australia Group (IAG) back in February 2019 read the full article →

Hong Kong aims for functioning ILS regulatory regime by early 2021

The Legislative Council of the Government of Hong Kong has now passed its new insurance legislation to allow for insurance-linked securities (ILS) such as catastrophe bonds to be issued there. The Insurance (Amendment) Bill 2020 was originally gazetted on March 20th and moved for swift approval by the Legislative Council (LegCo). The read the full article →

Side pockets for Covid-19 set-up in June, as ILS funds average 0.67%

A number of insurance-linked securities (ILS) fund managers established side pockets to segregate potential exposures related to the Covid-19 pandemic in June 2020, while some ILS and collateralised reinsurance funds also suffered adverse reserve development related to prior year catastrophes as well. But despite all of this, the average return of read the full article →

“Material increase” in ILW purchasing seen at renewals: Aon

Purchasing of retrocessional reinsurance coverage in industry-loss warranty (ILW) form was seen to show a "material increase" around the mid-year renewal season, according to broker Aon. In the companies' latest reinsurance market report, Aon said that the industry loss warranty (ILW) market is one area where a lot of activity has read the full article →

Swiss Re: Covid not a big event for sidecar, aims to expand ILS activity

Global reinsurance firm Swiss Re expects that while it seems that some losses from the Covid-19 pandemic could fall to its quota share sidecar investors, the amount won't be significant. Speaking this morning during the companies first-half earnings call, CFO of Swiss Re John Dacey said that the pandemic won't prove read the full article →

EIOPA calls for ILS role in pandemic risk, but warns on correlations

Europe’s insurance and reinsurance sector watchdog, the European Insurance and Occupational Pensions Authority (EIOPA), has highlighted the potential role of the capital markets and insurance-linked securities (ILS) in risk transfer and reinsurance facilities to support pandemic insurance provision. The Covid-19 pandemic has raised the issue of insurance coverage against such outbreaks read the full article →

Cat bonds already 20% up on prior year, busy pipeline to continue: Aon

Issuance of property catastrophe bonds was already running 20% ahead of the total for the prior year by the end of June 2020, putting the market well on its way to beating records again in 2020, Aon Securities explained in its latest report. As sponsors seek out efficient reinsurance and retrocession read the full article →

Unique features of ILS foster inherent ESG qualities: Synpulse’s Roder

As sustainable investing continues to gain traction across the financial world, the inherent ESG qualities of insurance-linked securities (ILS) provides a unique opportunity for investors, according to Patrick Roder, Associate Partner, ILS Practice Lead, Synpulse. “Sustainable investing (SI) is defined as integrating non-financial factors, such as ESG criteria, into the investment read the full article →

No cat bond impact possible from hurricanes Hanna & Douglas: Plenum

Neither Hurricane Hanna's impacts in the region of Texas where it made landfall as a category 1 storm over the weekend, or hurricane Douglas' impacts on the islands of Hawaii as it skirted them at category 1 strength today, are expected to have any effect on outstanding catastrophe bonds, according read the full article →

NMI prices new mortgage ILS, a $322m Oaktown Re IV Ltd.

After a pause during the peak of the Covid-19 pandemic, investors are returning to the mortgage insurance-linked securities (ILS) market, helping specialist mortgage insurer NMI Holdings, Inc. to successfully price its latest and fourth deal, a $322 million Oaktown Re IV Ltd. transaction. NMI is the second sponsor of mortgage insurance-linked read the full article →