Catastrophe bonds and insurance-linked securities news

The government of Hong Kong wants to attract more insurance-linked securities (ILS) sponsors to the Special Administrative Region, as it highlights a commitment to develop its ILS market and build on early successes there.

CyberCube, a specialist modelling firm for cyber risks and exposures, has analysed the four 144A cyber catastrophe bonds that have been issued to date and found that there is diversification between them, which it says means these first deals provide a solid base for future innovation.

We’re told that American Integrity Insurance Company has for the second time lifted the target size for its new catastrophe bond, with now $305 million in collateralized named storm reinsurance protection sought from the Integrity Re Ltd. (Series 2024-1) issuance, which would be a more than doubling of the size of this deal since its […]

Over the history of the catastrophe bond market, sponsors have recovered some 2.69% on a paid loss basis, which on a reported loss basis would have seen recoveries of 3%, according to Swiss Re Capital Markets.

The U.S. Federal Emergency Management Agency (FEMA) has raised its target for flood reinsurance from its latest visit to the catastrophe bond market, now aiming to secure up to $575 million of protection for the National Flood Insurance Program (NFIP), with the FloodSmart Re Ltd. (Series 2024-1) cat bond issuance.

Heritage Insurance Holdings, Inc., the nationally expansive and Florida headquartered property and casualty insurer, is back in the catastrophe bond market and seeking $100 million or more in collateralized US named storm reinsurance from a Citrus Re Ltd. (Series 2024-1) issuance.

American Integrity Insurance Company is aiming to upsize its new catastrophe bond coverage, with now $295 million or more in collateralized named storm reinsurance protection being sought from the Integrity Re Ltd. (Series 2024-1) issuance.

Some investors may not have realised that “reinsurance has a self-healing mechanism” causing them to miss out on the record year of returns in 2023, according to Larry Swedroe, Head of Financial and Economic Research at Buckingham Wealth Partners.

Arch Capital Group, the Bermuda headquartered specialty insurance and reinsurance company, has now secured the targeted $100 million of industry loss triggered protection from its new Ramble Re Ltd. (Series 2024-1) catastrophe bond, with the notes now priced at around 12% below the mid-point of initial guidance.

In 2023, the catastrophe bond market became increasingly attractive for sponsors, with the gap between traditional reinsurance and capital market rates narrowing for some perils, according to reinsurance firm Swiss Re’s Capital Markets division.