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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Trapped ILS capital falls slightly, overall reinsurance capital rises: Hyperion X

The amount of insurance-linked securities (ILS) capital and collateral that is still trapped after recent catastrophe loss years has fallen only slightly, as some cat bond collateral in particular was released but fresh collateralised reinsurance and retro collateral was trapped by 2019 loss events.At the same time, overall global reinsurance read the full article →

Cat bond rates gain 2% in Q4, hard market continues: Lane Financial

Catastrophe bond and ILS rates-on-line, as measured by a synthetic Index calculated by Lane Financial, rose 2% in the final quarter of 2019, as insurance-linked securities (ILS) remained in hard market territory and yields returned to levels seen earlier in the year.The latest data from consultancy Lane Financial LLC's synthetic read the full article →

Insurance & ILS are shock absorbers for climate, but need adjusting to the risk: McKinsey

Insurance products, reinsurance and insurance-linked securities (ILS) are all examples of financial shock absorbers for climate change risks, but while it can encourage behavioural change through the sending of price signals, a new report from McKinsey highlights the reality that the sector business models may need to change.Leaders in business, read the full article →

Allstate’s 2019 cat losses lower than prior two years at ~$2.6bn

U.S. primary insurance giant Allstate has ended the full-year 2019 with its pre-tax catastrophe losses amounting to just under $2.6 billion, lower than the prior two years and so far leaving its aggregate reinsurance protection untouched.Allstate has reported that its estimated catastrophe losses for the month of December 2019 only read the full article →

Hannover Re’s 3264 Re cat bond to grow 50% to $150m

The new international multi-peril 3264 Re Ltd. (Series 2020-1) catastrophe bond transaction that is being sponsored by global reinsurance firm Hannover Re looks likely to upsize by 50% to become a $150 million issuance.We also understand that this may not be a retrocession cat bond specifically for Hannover Re's benefit, read the full article →

Frontline Re cat bond trades at rock-bottom on hurricane Michael loss creep

The $350 million Frontline Re Ltd. (Series 2018-1) catastrophe bond transaction, that was sponsored by U.S. primary insurer Frontline Insurance in 2018, has seen one tranche trade at almost rock-bottom pricing on the threat of losses from hurricane Michael hitting the attachment point.The Frontline Re catastrophe bond, which provides $350 read the full article →

Carey Olsen hires ILS experienced lawyer Michael Frith in Bermuda

Offshore business focused law firm Carey Olsen has announced the hiring of Michael Frith in Bermuda, a lawyer that is experienced in advising on and assisting with ILS, catastrophe bond and collateralized reinsurance transactions.Michael Frith most recently worked for another offshore specialist law firm with insurance-linked securities (ILS) market expertise read the full article →

Taal volcanic eruption could be a quake threat to Philippines cat bond

The Taal volcano in the Philippines which began erupting yesterday poses a potential threat to the Philippines government's  IBRD CAR 123-124 catastrophe bond transaction, which would be on-risk should a major earthquake occur due to the volcano's current active state.The Taal volcano has always been considered one of the most read the full article →

Broader cat bond investor base takes pressure off single markets: Aon Securities

As the market for insurance-linked securities (ILS) and catastrophe bonds enters a new year that is expected to be busy, Aon Securities explained that the breadth of the investor base has now helped to reduce pressure on any single market for capacity, as well as expanded syndication of risk.The catastrophe read the full article →

Swiss Re assists with “pioneering” parametric cat bond for investor Bayview

Swiss Re Capital Markets, the insurance-linked securities (ILS) focused unit of the global reinsurance firm, has successfully helped to bring the first parametric catastrophe bond covering some of the earthquake risks in a portfolio of mortgage investments to market.Calling the recently completed Sierra Ltd. (Series 2019-1) catastrophe bond transaction "pioneering" read the full article →