Catastrophe bonds and insurance-linked securities news

Florida’s property insurer of last resort, Citizens Property Insurance Corporation, could increase its purchase of reinsurance and catastrophe bond backed risk transfer in 2024, with its new layer structure following the merging of its accounts suggesting as much as $5.5 billion could be purchased next year.

AXA XL, the global specialty insurance and reinsurance unit of the AXA Group, is now on course to settle its new Galileo Re Ltd. (Series 2023-1) catastrophe bond issuance to provide the firm $375 million in catastrophe protection.

The Eurekahedge ILS Advisers Index is set to achieve a record high annual return in 2023, as a strong showing in October has taken the average return of the insurance-linked securities (ILS) funds it tracks to 12.28% for the first ten months of this year.

LGT ILS Partners, the specialist dedicated insurance-linked securities (ILS) investment unit of the private bank and asset manager LGT Capital Partners, is confident that market conditions are going to remain attractive into 2024, even expecting some marginal price increases in certain areas of the reinsurance renewals.

The California Earthquake Authority (CEA) has now finalised its latest Ursa Re Ltd. (Series 2023-3)  catastrophe bond, securing  $650 million of reinsurance protection from the deal at pricing, which is a 62.5% increase on its initial target.

Selective Insurance, the US property and casualty insurer, has now priced its debut catastrophe bond issuance and secured the 62.5% upsizing of the deal to benefit from $325 million in reinsurance thanks to the High Point Re Ltd. (Series 2023-1) transaction.

ARX Holding, the Progressive-owned parent of American Strategic Insurance Group, is back in the catastrophe bond market for its second issuance of 2023, seeking a $50 million or larger single-year source of additional multi-peril catastrophe reinsurance from a Bonanza Re Ltd. (Series 2023-2) transaction.

Another first-time sponsor has entered the catastrophe bond market and it is the second farm bureau sponsor of recent weeks, with the Texas Farm Bureau Insurance Companies seeking a $200 million source of named storm reinsurance through a Fish Pond Re Ltd. (Series 2024-1) issuance.

AXA XL, the global specialty insurance and reinsurance unit of the AXA Group, has increased the target size for its new Galileo Re Ltd. (Series 2023-1) catastrophe bond issuance, with now up to $400 million in protection sought from the deal.

This video features the first keynote speech and Q&A of the day at our Artemis London 2023 catastrophe bond and insurance-linked securities (ILS) conference, that was held in London on September 5th 2023.