Catastrophe bonds and insurance-linked securities news

Helped by the recent spread widening seen in the catastrophe bond market, the overall market yield in US dollars has reached almost 13.5% again, which is the highest level the return potential of the cat bond market has been at in over eight months.

RenaissanceRe, the Bermuda based reinsurance company and third-party capital manager, is back in the catastrophe bond market seeking $100 million or more in retrocessional protection from a Mona Lisa Re Ltd. (Series 2024-1) deal, for risks in its own portfolio and that of its flagship partner capital vehicle DaVinci Re.

US primary insurance giant Allstate has returned to the catastrophe bond market and secured $74.5 million in additional multi-peril reinsurance protection through a new Sanders Re II Ltd. (Series 2024-2) cat bond issuance that has been relatively privately placed as zero-coupon notes, Artemis has learned.

We’re told by sources that global reinsurance player Ariel Re has opted to pull its latest catastrophe bond issuance as a response to the dynamic and higher cat bond market pricing environment, so the Titania Re Ltd. (Series 2024-1) transaction will not now be issued.

The catastrophe bonds that have seen the biggest price moves in recent weeks appear to be those that have seen their expected losses rise the most when remodelled using the RMS V23 update, according to Plenum Investments.

Swiss Re Insurance-Linked Investment Management Ltd. (SRILIM), a specialist insurance-linked securities (ILS) fund management unit of the global reinsurance company, has now surpassed a new milestone of more than $1 billion in assets under management (AUM).

Analysts at investment bank Jefferies came back from a trip to Bermuda meeting with reinsurance and ILS market executives with the conclusion that property catastrophe pricing has held up well, perhaps better than anticipated, and that market discipline is expected to extend into 2025.

Securis Investment Partners, the London-headquartered insurance-linked securities (ILS) investment manager, has announced the appointment of experienced catastrophe bond and ILS market specialist Judy Klugman as an independent Non-Executive Director to its Board.

Palomar Insurance Holdings, the speciality California-headquartered insurer that offers largely catastrophe exposed property products, has completed its reinsurance renewal for 2024 and lifted the top of its tower to $3.06 billion, with its largest catastrophe bond yet contributing to the coverage growth.

Dutch headquartered Europe-focused insurance group Achmea is back in the catastrophe bond market, seeking €75 million in collateralized European windstorm reinsurance protection from a Windmill III Re DAC (2024-1) issuance, that looks set to at least partially renew its maturing cat bond from 2020, Artemis has learned.