Catastrophe bonds and insurance-linked securities news

The insurance-linked securities (ILS) asset class has demonstrated the benefits of diversification it can offer to investors and also its resilience to global events so far in 2024, according to Twelve Capital’s Head of Investment Solutions, Vittorio Sangiorgio.

While the London insurance and reinsurance market has been growing it is being outpaced by other markets and insurance-linked securities (ILS) is again highlighted as an area of opportunity where results have lagged ambitions and there remains work to do, the London Market Group’s latest report makes clear.

The successful second cyber catastrophe bond sponsored by Beazley, the $160 million PoleStar Re Ltd. (Series 2024-2) issuance that we reported on last Friday, is testament to the replicable 144A structure that has been created, according to Theo Norris, Head of Cyber ILS at Gallagher Securities.

The market for 144A catastrophe bonds is on-track to set a stunning new issuance record for the first-half of the year, with more than $11.4 billion of new cat bonds already lined up to be issued during H1 2024, data from Artemis’ Deal Directory shows.

Palomar Insurance Holdings has now finalised its largest catastrophe bond ever, with the Torrey Pines Re Ltd. (Series 2024-1) issuance priced to secure $420 million in California earthquake reinsurance from the capital markets for the company, Artemis has learned.

The SureChoice and Elevate reciprocal exchanges, that are linked to expansive coastal MGU SageSure, are back for what will be their third catastrophe bond of the year, seeking another up to $100 million in named storm reinsurance from a Gateway Re Ltd. (Series 2024-3) cat bond issuance.

Beazley has successfully sponsored a second 144A cyber catastrophe bond, securing a further $160 million in cyber reinsurance from a PoleStar Re Ltd. (Series 2024-2) issuance, which takes its total cyber cat bond cover to $300 million, Artemis has learned.

Appleby, the specialist global law firm and fiduciary services provider, has announced the hiring of Cathryn Minors, a lawyer with experience across insurance-linked securities (ILS), insurance and reinsurance in offshore domiciles, as a new Counsel in its Bermuda office.

With the cyber insurance market size projected to increase in the near future, members of the Neuberger Berman ILS team have said that insurance-linked securities (ILS) will “likely play a crucial role” in providing additional capital to support said growth.

US primary insurer Allstate has begun the new annual aggregate loss year for its catastrophe bonds with a costly $494 million of pre-tax catastrophe losses reported, as severe weather and tornadoes impacted the company.