Catastrophe bonds and insurance-linked securities news

The pricing of recent industry index catastrophe bond issues have been at levels last seen prior to hurricane Ian, leading broker Aon to suggest “a quantifiable return to pre-Ian pricing dynamics” has occurred.

Stone Ridge Asset Management, the New York based asset manager an alternative risk premia focus, saw its dedicated mutual insurance-linked securities (ILS) fund assets under management (AuM) remain relatively flat in the last quarter of record, but the manager started adding catastrophe bonds and sidecar investments to another alternatives fund.

With significant new issuance volumes seen of late, the catastrophe bond market is tracking towards a record year in 2023, Aon Securities has said.

Coastal property managing general underwriter SageSure is back in the catastrophe bond market for already the fourth time this year, but this time it is seeking county-weighted aggregate retrocessional protection via its captive reinsurance vehicle, through a $50 million Gateway Re Ltd. (Series 2023-3) issuance.

According to the latest data from insurance and reinsurance broker Aon, alternative reinsurance capital, largely deployed in insurance-linked securities (ILS) formats, has resumed growth and reached a new high of $100 billion.

As we reported back in April, the European Central Bank (ECB) and the European Insurance and Occupational Pensions Authority (EIOPA) have highlighted the use of catastrophe bonds as critical to support the supply of catastrophe insurance and reinsurance across the region, while also proposing issuance is brought closer to home.

Schroders Capital has launched a new catastrophe bond fund that has been designed as an offering for US investors, raising $70 million from two clients earlier this month for the Schroders Capital Coda Fund.

In advance of the end of the quarter, Artemis can now report that issuance of property catastrophe bonds in the first-half of 2023 will close out June at an all-time high for the period of almost $9.7 billion, which beats the full-year total from 2022 and sets a new record for any half-year of cat […]

Slide Insurance Company has now finalised the pricing for its second catastrophe bond, with the $100 million Purple Re Ltd. (Series 2023-2) transaction secured with a spread roughly 9% below the initial mid-point of guidance.

The Florida State Board of Administration, which manages the huge and roughly $180 billion Florida Retirement System Pension Plan, looks set to increase the size of its allocation to insurance-linked securities (ILS).