Catastrophe bonds and insurance-linked securities news

The price guidance range has been lowered for a second time for the latest catastrophe bond to be sponsored by Prologis, Inc., the logistics, warehousing and supply-chain focused real estate owner and investor, while the target size is still unchanged at $95 million for the Logistics Re Ltd. (Series 2024-1) US earthquake cat bond issuance.

Artemis returns to New York on February 7th 2025 for the ninth conference in the series and our eighth in-person event held in the city, with around 400 attendees expected to join us at ILS NYC 2025, we are now making Super Early Bird rate tickets broadly available. Register soon to attend at the best […]

US primary insurer Allstate has reported that its pre-tax catastrophe losses for the third-quarter of 2024 reached $1.7 billion, with $630 million of that total due to hurricane Helene.

John Doyle, the President and CEO of Marsh McLennan, parent company to reinsurance broker Guy Carpenter, said just now that because of the recent hurricanes, an impact is expected on property insurance and reinsurance pricing for 2025, while he also said that the catastrophe bond market is expected to see elevated issuance over the coming […]

A fourth private catastrophe bond issuance of the year has come to light from Mangrove Risk Solutions Bermuda Ltd., the platform operated by Marsh McLennan and reinsurance broker Guy Carpenter, with a just over $14.35 million Mangrove Risk Solutions Bermuda Ltd. (Series 2024-C) placement completed.

Having shown a divergence in manager strategies as NAVs moved in different directions at times and by different amounts as hurricane Milton approached, the US mutual investment funds that allocate to catastrophe bonds and other insurance-linked securities (ILS) diverged again at pricing on Friday, but have since stabilised having incorporated post-landfall net asset value adjustments.

We’re told by sources that the price guidance range has been lowered for the second catastrophe bond to be sponsored by Prologis, Inc., the logistics, warehousing and supply-chain focused real estate owner and investor, while the target size remains at $95 million for its new Logistics Re Ltd. (Series 2024-1) US earthquake cat bond issuance.

Catastrophe bond fund manager Icosa Investments has highlighted current uncertainty over the level of losses the market may face from hurricane Milton, but notes that while some principal losses seem likely there remains a high level of uncertainty over certain structures, especially aggregate cat bonds that have much of their risk periods left to run.

A very strong September return across the group of UCITS catastrophe bond fund’s tracked by the Plenum CAT Bond UCITS Fund Indices has taken the average return for the year to October 4th to an impressive 10.6%, although hurricane Milton will dent this slightly once the storm is accounted for.

Analysis from Milliman concludes that hurricane Milton will end up a relatively minor catastrophe loss event for the insurance-linked securities (ILS) market, based on an estimate of insurance market losses in the $20 billion to $40 billion range.