Catastrophe bonds and insurance-linked securities news

Global insurance and reinsurance group AXA has increased its appetite for European windstorm reinsurance protection through the new Eiffel Re Ltd. (Series 2023-1) catastrophe bond issuance, with the deal now targeted at up to €150 million in size.

The recently launched and still in the market Acorn Re Ltd. (Series 2023-1) parametric earthquake catastrophe bond transaction has had its target lifted to now as much as $175 million, while at the same time the pricing has been slashed.

Two tranches of the Caelus Re catastrophe bonds sponsored by US primary insurance giant Nationwide Mutual Insurance Company that have been considered at-risk of facing a complete loss since 2021 have now had its maturity date extended by one month, as the carrier looks to finalise its reinsurance recoveries from prior years, we understand.

Raising capital into collateralized reinsurance investment fund opportunities continues to be a much slower segment of the insurance-linked securities (ILS) market than catastrophe bonds, which is buoying hopes the hard reinsurance market could be prolonged well into 2024.

BMS Re, the reinsurance arm of the international broking group, has hired former Nephila Capital employee Brendan O’Brien to further build out its Bermuda reinsurance and retro offering, as well as to support its secondary catastrophe bond trading plans.

Randolph Re, insurance and reinsurance broker Aon’s private catastrophe bond issuance and placement platform, has completed a EUR 100 million private cat bond transaction, Randolph Re (Groupama), for Paris headquartered insurer Groupama.

Vermont Mutual Insurance Company looks set to secure its latest catastrophe bond at reduced pricing, as the spread for the new $100 million Baldwin Re Ltd. (Series 2023-1) cat bond issuance has now been reduced to the low-end of initial guidance.

Participants in the global insurance and reinsurance industry need to consider alternative capital and insurance-linked securities (ILS) as a “core part of their capital management strategy” to deliver on promises of plugging protection gaps, enhance relevance to clients and make their reinsurance purchases more efficient, consultants at McKinsey have said.

Slide Insurance Company has returned to the catastrophe bond market for its second time, seeking another $100 million in named storm reinsurance protection through a Purple Re Ltd. (Series 2023-2) transaction.

Allstate, the large U.S. primary insurer, has reported catastrophe losses for the month of May of an estimated $893 million, slightly higher than the $872 million reported in April.