Catastrophe bonds and insurance-linked securities news

After a successful 2023 and continued, strong interest in its strategies, insurance-linked securities (ILS) investment fund manager, Elementum Advisors, LLC, is optimistic on the growth of the market and the environment in 2024.

In a fresh analysis of the catastrophe bond market, consultancy Lane Financial LLC takes a look at loss expectations and concludes once again that actual cat bond losses are lower than the amount of principal losses risk modelling suggests should have occurred over the market’s history, as a result of which the market has outperformed.

Florida Peninsula Insurance Company has now finalised details for its debut and upsized $150 million named storm reinsurance catastrophe bond deal, Palm Re Ltd. (Series 2024-1), with the notes pricing at a level almost 11% below the mid-point of initial guidance.

Target allocation ranges have been adjusted for some of the investments that make up the giant insurance-linked securities (ILS) portfolio managed by PGGM, the Dutch pension fund investment manager, on behalf of its end-client the Dutch pension PFZW.

The Government of Jamaica has returned to the catastrophe bond market as anticipated, with an initial target to secure at least $150 million in parametric named storm disaster insurance protection from the capital markets through this IBRD CAR Jamaica 2024 cat bond, to cover the country over four hurricane seasons.

American European Insurance Company is now aiming to reduce the pricing further for its first catastrophe bond deal, with the guidance on the $125 million of Charles River Re Ltd. (Series 2024-1) catastrophe bond notes lowered for a second time.

The global reinsurance arm of insurance intermediary group Howden is set to drop Tiger from its name, rebranding to a more aligned Howden Re and the firm’s capital markets and insurance-linked securities (ILS) specialist unit will become Howden Capital Markets & Advisory.

The level of insurance-linked securities (ILS) capital reached new heights in 2023 on the back of record issuance in the catastrophe bond market, and while collateralised reinsurance has so far failed to rebound, there are signs of growth, according to James Vickers, Chairman of International, Gallagher Re.

According to Aon Securities, the insurance-linked securities (ILS) and investment banking arm of Aon’s Reinsurance Solutions, the amount of alternative capital in the reinsurance industry ended 2023 at a new high of $108 billion, a figure the broker expects to grow as interest investor is growing across the range of ILS instruments.

The Government of Mexico has now secured the upsized target of $420 million of parametric disaster insurance protection against earthquakes and Atlantic hurricane through its new World Bank facilitated IBRD CAR Mexico 2024 catastrophe bond transaction, Artemis can report.