Catastrophe bonds and insurance-linked securities news

Having peaked with a market yield of around 16% back in January 2023, the catastrophe bond market has moderated, but remains very attractive, with the cat bond market yield now stabilising at around the 12% level (in USD), Plenum Investments believes.

While almost every market observer and industry analyst are expecting reinsurance capital levels to increase in 2024, broker Howden has highlighted that actually securing access to capital will be a key differentiator for market participants, as not everyone is expected to be successful.

Despite some obvious limitations which can be overcome, 2023 will be remembered as the year when cyber insurance-linked securities (ILS) became a reality, with further developments expected in the year ahead, according to Jose Seara and George Mawdsley of DeNexus.

There are now only two weeks left until our upcoming insurance-linked securities (ILS) conference. ILS NYC 2024 will be held in New York City on February 9th 2024 and spaces are now running low, so please register soon if you want to join us.

Brazil’s regulations for “Letra de Risco de Seguro”, or LRS which translates to Letter of Insurance Risk and are effectively insurance-linked securities (ILS) laws, have passed a key hurdle and been approved by its National Monetary Council.

GeoVera Insurance Holdings, Ltd., a specialty earthquake-focused residential property insurance company, is now aiming to secure an upsized $175 million or more in US earthquake reinsurance via its new Veraison Re Ltd. (Series 2024-1) catastrophe bond issuance.

A new private catastrophe bond arrangement has come to light, as the Artex Capital Solutions managed Eclipse Re structure has issued a $100 million Eclipse Re Ltd. (Series 2024-1A) deal.

With the recent settlement of its latest cat bond issuance, US primary insurance firm Allstate has now moved to the top position in Artemis’ catastrophe bond sponsor leaderboard, with an impressive almost $2.86 billion in risk capital outstanding.

A record breaking year for the catastrophe bond and related insurance-linked securities (ILS) market and continued momentum in early 2024 is having a positive influence on the wider ILS market, according to Brad Adderley, Bermuda Managing Partner, Appleby.

Fitch Ratings has estimated that alternative reinsurance capital, largely deployed in insurance-linked securities (ILS) formats, will have reached $105 billion by the end of 2023, once the final figures are known.