Catastrophe bonds and insurance-linked securities news

The latest catastrophe bond news from Artemis. Covering the intersection of reinsurance and risk capital markets. A chronological archive of all of our cat bond news stories. For the latest news and full coverage visit the homepage.

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AIG’s investment in AlphaCat ILS funds recovers more value in Q2

The value of the investment stake of American International Group, Inc. (AIG) in the insurance and reinsurance linked fund strategies managed by its AlphaCat Managers ILS unit continued to recover in the second-quarter of 2019.The insurance-linked securities (ILS) operations of AlphaCat Managers, which currently counts $4.1 billion of assets invested read the full article →

Reinsurer cat exposure up, retro flat, says S&P. Capital dynamics evolving?

Some global reinsurance players have been increasing their exposure to catastrophe risks, taking advantage of higher premium rates available, but there hasn't been a noticeable uptick in retrocession buying as a result, according to S&P Global Ratings.Reinsurance firms have in some cases "chosen to stop retrenching" leading to a divergence read the full article →

AIG’s income from AlphaCat down on small investment loss

Global insurance and reinsurance carrier American International Group, Inc. (AIG) has reported a slight decline in income earned from the insurance and reinsurance linked fund operations of ILS manager AlphaCat in the second-quarter.The insurance-linked securities (ILS) operations of AlphaCat Managers, which looks after roughly $4.1 billion of assets invested across read the full article →

MGIC restructures quota share, but mortgage ILS help on PMIERs

Mortgage risk insurer MGIC has revealed that the removal of maximum coverage levels in certain states resulted in the partial termination and restructuring of its 2015 quota share reinsurance arrangement with an affiliate, which subsequently impacted its Q2 results.In the second-quarter of 2019, MGIC’s ceded premiums written and earned increased read the full article →

Cat bond loss creep now “substantially reduced” – Willis Re Securities

The insurance-linked securities (ILS) market is slowly returning to normal, as loss creep affecting the sector has reduced substantially, according to Willis Re Securities.The capital markets unit of the reinsurance broker noted that by the end of the second-quarter of 2019, the loss creep from prior year catastrophe events continued read the full article →

ILS funds report mixed returns, as loss creep continued in June

Loss creep continued to affect the market for insurance-linked securities (ILS), catastrophe bonds and collateralized reinsurance funds in June 2019, denting the average performance to a below average 0.30% for the month.Typhoon Jebi and hurricane Michael continued to result in some negative ILS fund performance, particularly from those investing in read the full article →

Eclipse Re in another $25m private cat bond, believed for Fermat & Citizens

Another private catastrophe bond has been issued by the Eclipse Re Ltd. vehicle, in a $25m Eclipse Re Ltd. (Series 2019-04A) transaction, this time featuring a slice of risk we believe to have come from Florida Citizens recent reinsurance renewal and to be backed by funds under the management of read the full article →

Swiss Re uses more third-party capital to back nat cat expansion

Global reinsurance giant Swiss Re has returned more meaningfully to the capital markets and insurance-linked securities (ILS) in 2019, reported by the firm as a "significantly increased use of third party capital" used to back what looks like significant growth in catastrophe exposures underwritten.An expanded reinsurance business was one of read the full article →

Cincinnati’s losses reach 74% of Skyline Re cat bond trigger at end of Q2

Cincinnati Financial Corporation’s aggregated catastrophe and severe weather losses over the first-half of 2019 have been sufficiently severe to reach 74% of the way towards the trigger attachment point of its $180 million Skyline Re Ltd. (Series 2017-1) catastrophe bond.The Skyline Re catastrophe bond was sponsored in January 2017 by read the full article →

Eclipse Re in largest private cat bond, a new $100m ILS transaction

The Eclipse Re Ltd. vehicle, a special purpose insurance and segregated accounts company that was originally launched by Horseshoe Group and Rewire Securities LLC, has completed its largest private catastrophe bond to-date, a $100 million Eclipse Re Ltd. (Series 2019-05A) ILS transaction.It's the second transaction of the month issued by read the full article →