Catastrophe bonds and insurance-linked securities news

The Government of Mexico has returned to the catastrophe bond market, seeking $360 million or more in disaster insurance protection for earthquake and hurricane events, through a World Bank facilitated IBRD CAR Mexico 2024 parametric catastrophe bond, Artemis has learned.

Catastrophe bond funds in the UCITS format have continued to experience growth as a group in early 2024, ending February with $11.24 billion in combined assets under management (AUM), while two UCITS cat bond funds have surpassed the $3 billion milestone this year.

Having recently settled its latest and seventh catastrophe bond issuance, securing more flood reinsurance protection for the National Flood Insurance Program (NFIP), David Maurstad of the U.S. Federal Emergency Management Agency (FEMA), said the cat bond coverage was secured at “favorable terms”.

Slide Insurance Company is back in the catastrophe bond market for what will be its third time, seeking what could be its largest issuance as it targets $150 million in named storm reinsurance through this Purple Re Ltd. (Series 2024-1) transaction.

Brookfield Corporation, a Canadian multinational that is one of the largest alternative investment management companies, is looking to the catastrophe bond market and sponsoring a $100 million Aragonite Re Ltd. (Series 2024-1) deal, to provide named storm and earthquake insurance protection for its portfolios of property investments.

The U.S. National Hurricane Center (NHC) has delivered its final tropical cyclone report for 2023’s hurricane Otis, putting the minimum central pressure of the storm at 922mb and 929mb at landfall on the Mexican coast, which we’re told still suggests the $125 million IBRD / FONDEN 2020 Class D tranche of catastrophe bond notes face […]

The North Carolina Insurance Underwriting Association (NCIUA) is looking to significantly upsize its latest catastrophe bond transaction, with now $450 million of named storm reinsurance sought from the Cape Lookout Re Ltd. (Series 2024-1) issuance, Artemis has learned.

Another first-time catastrophe bond sponsor has come to market, as Texas headquartered Allied Trust Insurance Company looks to secure $100 million in fully-collateralized named storm reinsurance protection from the capital markets through this Sabine Re Ltd. (Series 2024-1) issuance, Artemis has learned.

The nascent cyber catastrophe bond and insurance-linked securities (ILS) market must grow to support the need for cyber insurance coverage, as traditional reinsurance risk tolerances are reached and the capital markets provides the perfect alternative, speakers at our recent ILS NYC 2024 conference explained.

See updates in this article for the latest outlook for the quarter. Catastrophe bond issuance recorded by Artemis so far in 2024 has already surpassed $2.8 billion and when we include all the remaining cat bonds that are still being marketed and are scheduled to settle before the end of March, the first-quarter 2024 total […]