Catastrophe bonds and insurance-linked securities news

RenaissanceRe has reported a significant year-on-year uplift in its fee income earned from third-party reinsurance capital and insurance-linked securities (ILS) operations, with the second-quarter 2023 seeing the total earned rise by 65.5% to $56.7 million.

RenaissanceRe (RenRe), the Bermuda headquartered global reinsurance firm and third-party capital management specialist, has reported raising $350.5 million of new capital from investors largely for catastrophe bond strategies during the second-quarter of 2023.

The secondary market price for the Vita Capital VI Limited (Series 2021-1) mortality catastrophe bond transaction that was sponsored by global reinsurance firm Swiss Re has dropped, with the market seemingly anticipating an increasing chance of losses being paid under the terms of the notes.

SageSure, the specialist independent managing general underwriters of property catastrophe exposed insurance, has hailed its use of the Property Claim Services (PCS) county-level catastrophe loss reporting in the trigger of its newest $50 million Gateway Re Ltd. (Series 2023-3) catastrophe bond.

Plenum Investments, the Zurich based specialist catastrophe bond and insurance-linked securities (ILS) investment manager, has announced the appointment of Dr. Andreas Rickert as a new member of its Board of Directors.

For reinsurance broker Guy Carpenter two areas of specific growth during the second-quarter of 2023 were the insurance-linked securities (ILS) market and global retrocession, with capital inflows seen to help activity increase, according to President and CEO Dean Klisura.

Property catastrophe bond issuance in 2023 has now exceeded the $10 billion mark, and so is well on track to beat the previous annual record of $12.5 billion seen in 2021, Artemis’ data shows.

The just completed first indemnity catastrophe bond sponsored by asset management giant Blackstone is a new milestone for the insurance-linked securities (ILS) market, Swiss Re’s Jean-Louis Monnier has said, as it broadens what the cat bond can do for asset managers seeking peak catastrophe peril protection.

The insurance and reinsurance industry faces a potential crisis of confidence over some forms of collateral, as the fall-out from the Vesttoo fraudulent, or forged, letter of credit (LOC) claims spread, which might elevate the profile of the fully-collateralised model of reinsurance adopted by the insurance-linked securities (ILS) market.

Large U.S. insurer Allstate has reported catastrophe losses of an estimated $1.13 billion for June 2023, taking total losses from events for the second-quarter of the year to $2.7 billion, pre-tax.