Catastrophe bonds and insurance-linked securities news

Insurance-linked securities (ILS) such as catastrophe bonds are seen as a versatile and adaptable diversifying strategy that can can provide investors strong, reliable return potential, particularly on a risk-adjusted basis, the Liquid Diversifiers team at WTW has said.

Large US primary insurer Allstate has reported estimated catastrophe losses of $306 million for the month of August, with $75 million, or approximately 25% related to a hail event in Calgary, Canada. Allstate has revealed that the Calgary hail estimate includes reinsurance reinstatement premiums and is net of anticipated reinsurance recoveries of $225 million. At […]

Alternative capital has become an important part of the reinsurance industry’s capital structure, according to Urs Baertschi, CEO of P&C Reinsurance at Swiss Re.

Analysis from broking group Aon and Parametrix, a specialist in parametric cloud downtime cyber risk transfer, shows that it is possible to gain diversification within cyber portfolios that have cloud outage risk concentrations, with geography one way to achieve that.

Beazley has now secured its latest cyber catastrophe bond and further upsized the transaction to provide even more in reinsurance, with the PoleStar Re Ltd. (Series 2024-3) issuance set to price at $210 million in size for the company, Artemis has learned.

The total-return of the outstanding catastrophe bond market for 2024 through the end of August has now hit double-digits at 10.07%, according to data from the Swiss Re Cat Bond Performance Indices, which means while cat bond market performance is running behind the prior year, returns remain historically elevated.

Beazley is aiming to more than double the size of its latest cyber catastrophe bond, with the PoleStar Re Ltd. (Series 2024-3) issuance now targeted to secure $200 million in reinsurance protection, Artemis has learned.

The DaVinci Re joint-venture sidecar-like but equity-backed structure stands-out for the strongest growth in third-party capital among the vehicles managed by RenaissanceRe’s Capital Partners division, which had $7.15 billion in third-party investor assets under management at the mid-way point of 2024.

Two more outstanding catastrophe bonds that are exposed to potential losses from hurricane Ian have been marked down further on secondary pricing sheets, as US primary insurer American Integrity has increased its estimate for the storm, Artemis has learned.

The first insurance-linked securities (ILS) structure under Brazil’s regulations for “Letra de Risco de Seguro”, or LRS which translates to Letter of Insurance Risk, could be named Andrina Seguros and sponsored by local reinsurance company IRB RE, according to a report.