Catastrophe bonds and insurance-linked securities news

A new Mayflower Re Ltd. (Series 2023-1) catastrophe bond has been launched to provide $175 million or more in multi-peril catastrophe reinsurance to the Massachusetts Property Insurance Underwriting Association (MPIUA).

The catastrophe bond market is growing its share of the reinsurance and risk transfer program that protects the California Earthquake Authority (CEA), despite discussions at the Board over how to approach capital provision in future.

The design of the recently announced Climate Resilient Development Bond (CRD Bond), an insurance-linked security (ILS) hybrid that integrates catastrophe bond protection and investment in climate resilience, was driven in part by the trend towards risks becoming uninsurable, according to Julian Enoizi, Global Head of Public Sector at Guy Carpenter.

Global insurance and reinsurance group AXA has returned to the catastrophe bond market in 2023 for its first transaction since 2019, seeking €125 million or more of European windstorm reinsurance protection through an Eiffel Re Ltd. (Series 2023-1) cat bond issuance.

Conduit Re has now secured its debut catastrophe bond deal, with the company achieving the $100 million target for the Stabilitas Re Ltd. (Series 2023-1) retro reinsurance cat bond, while the notes have now been priced some 9% below the initial guidance mid-point.

A new financial structure that can provide community-based climate insurance or risk transfer protection from the capital markets, while incorporating resilience, advanced funding for loss-prevention and mitigation, through an insurance-linked security (ILS) designed structure has been proposed.

Another sponsor is re-entering the catastrophe bond market after a hiatus away from it in 2023, as NJM Insurance seeks $175 million in named storm reinsurance from the capital market with a new cat bond, a Lower Ferry Re Ltd. (Series 2023-1) issuance.

The Hanover Insurance Group has now finalised its new Commonwealth Re Ltd. (Series 2023-1) catastrophe bond issuance to secure the 20% upsized target for $150 million of protection, while pricing the notes at the bottom-end of initial guidance.

The California Earthquake Authority (CEA) has now finalised its new Sutter Re Ltd. (Series 2023-1) catastrophe bond issuance, securing the upsized target of $425 million of reinsurance protection, representing a 42% increase from the initial launch size.

The recently completed sponsorship of its debut second and subsequent event focused catastrophe bond, the $100 million Gateway Re Ltd. (Series 2023-2) deal, is a “necessary layer of additional protection during the 2023 Atlantic hurricane season,” SURE President Ed Konar has explained, while Swiss Re’s Jean-Louis Monnier said it represents efficient reinstatement capacity.