Catastrophe bonds and insurance-linked securities news

Hurricane Idalia is not expected to significantly impact catastrophe bonds, with a shift in its forecast track north and further away from Tampa having lowered the modelled expected loss outcome for the storm, according to specialist asset manager Plenum Investments.

This first video of the day at our Artemis ILS Asia 2023 conference, held in Singapore on July 13th 2023, featured the Monetary Authority of Singapore (MAS) giving a welcome keynote speech to our 200 plus attendees.

Despite having for some months been expected to face a total loss of its $300 million of principal and already being marked down for an expected full loss on secondary market trading sheets, Allstate’s Sanders Re II 2019-1 catastrophe bond has had its maturity date further extended for another three years, while the recovery is […]

The proposed acquisition of GAM Holding AG, parent company to GAM Investments and home to one of the largest catastrophe bond fund strategies, by specialist fund management group Liontrust has failed to win the necessary investor support, with the GAM Board now turning to discussions with the rival investor group NewGAMe.

The alternative capital market in reinsurance is primed for growth through the rest of 2023, with favourable conditions expected, according to rating agency Fitch.

The importance of the Fermat Capital Management catastrophe bond funds to global asset manager GAM Investments has become abundantly clear, with disclosures related to the GAM Holding acquisition by Liontrust suggesting Fermat is responsible for as much as 21% of the assets and revenues of the firm.

The impact of tropical storm Hilary in California and surrounding areas of the US south west could be another event that serves to further erode some of the retention layers sitting beneath catastrophe bonds that provide aggregate reinsurance protection, investment manager Twelve Capital has cautioned.

In the first-half of 2023, the catastrophe bond market broke a number of records, as fresh investor flows and successful capital raising by insurance-linked securities (ILS) fund managers helped make the cat bond an attractive alternative to reinsurance and an even better complement, Swiss Re has said.

Global insurance and reinsurance specialist Everest Group has $350 million of industry loss based retrocessional protection available to it from its catastrophe bonds to cover losses related to hurricane Ian, should the current industry loss estimate creep higher.

Third-party capital in reinsurance, so what would often be termed alternative capital or insurance-linked securities (ILS) market capacity, is now projected to grow by over 3% in full-year 2023, to reach approximately $99 billion by year-end.