Catastrophe bonds and insurance-linked securities news

Global reinsurance firm Ariel Re has returned to the catastrophe bond market looking to secure $175 million or more in multi-peril industry-loss triggered retrocession through the Titania Re Ltd. (Series 2024-1) transaction, a deal that had initially been mooted earlier in the year.

Some investors have started to experience benefits from the outperformance of investments in the private reinsurance segment compared to catastrophe bonds, after softening of pricing had been seen in the second quarter, Pascal Koller Partner and Portfolio Manager at LGT ILS Partners Ltd., recently commented.

NN Group’s, or Nationale-Nederlanden, latest catastrophe bond has seen its price guidance range fall, we understand, with the still €75 million Orange Capital Re DAC (Series 2024-1) issuance now looking likely to price at the bottom of initial guidance, or below.

In announcing its third-quarter results at end of day yesterday, US insurer Allstate also provided an insight into the losses it expects from recent hurricane Milton and at the level disclosed, it appears that the lowest of the carriers Florida focused Sanders Re catastrophe bonds could trigger and pay out, Artemis can report.

We’ve learned from sources that insurer USAA has estimated its losses from hurricane Helene at $1.15 billion, while losses from hurricane Milton are estimated to be $218 million, for a combined impact from the two storms at this time estimated at just over $1.37 billion.

The overall yield of the catastrophe bond market rose as the market repriced positions in the wake of recent hurricane Milton, but like other market indices and the performance of cat bond funds themselves, the effect of the storm has been quickly overtaken by continued positive market momentum.

Analysis from ICEYE, the provider of satellite data and services to inform decision-making and analysis, has shown that almost 185,000 buildings in Florida were impacted by hurricane Milton’s flooding.

SageSure, the catastrophe exposed and coastal property managing general underwriter that has now brought eight Gateway Re catastrophe bonds to market on behalf of its underwriting entity partners, has announced the appointment of former Guy Carpenter CEO Peter Hearn to its Board of Managers.

Bill Dubinsky, CEO of Gallagher Securities, has highlighted that a key challenge for the insurance-linked securities (ILS) market heading into next year will be sustaining the growth momentum seen in 2023 and 2024, given a certain amount of activity this year was deals brought forward that would have otherwise naturally occurred in 2025.

With catastrophe bond market returns remaining elevated, the cat bond market index calculated by Swiss Re Capital Markets rose again in the last week, regaining all of the decline seen from hurricane Milton and more, to now stand 0.25% higher than when that storm hit.