Catastrophe bonds and insurance-linked securities news

The Texas Windstorm Insurance Association (TWIA) has raised its target for reinsurance from its new 144a Alamo Re Ltd. (Series 2023-1) catastrophe bond issuance, with now up to $500 million of cover sought, which would be a doubling of the initially targeted size.

Slide Insurance Company’s debut Purple Re Ltd. (Series 2023-1) catastrophe bond has now been finalised to provide it the targeted $100 million of named storm reinsurance protection, while the spread was fixed at just 2% above the mid-point of initial price guidance.

Nationally expansive and Florida headquartered property and casualty insurer Heritage Insurance Holdings, Inc. has returned to the catastrophe bond market with a Citrus Re Ltd. (Series 2023-1)  deal, seeking $180 million or more in named storm reinsurance protection from the capital markets.

Inflows to the catastrophe bond market and recoveries in values of certain cat bond positions through the first-quarter of 2023, have driven the combined assets under management of the main UCITS cat bond fund strategies 7% higher to a new record of $9.37 billion.

White Rock Insurance (SAC) Ltd. has issued a sixth transaction in the Japanese Asagao private parametric earthquake catastrophe bond series, with a smaller that typical $4.6 million Asagao VI transaction coming to light.

Kin Insurance, the direct-to-consumer and fast-growing insurtech, is clearly delighted with the investor response to its successful placement of a $100 million Hestia Re Ltd. (Series 2023-1) catastrophe bond deal, with an expanded investor base one of the notable mentions.

The attractive margins still available to investors in catastrophe bonds have the potential to drive “meaningful market growth” in 2023, broker Aon has explained.

Insurance-linked securities (ILS) funds delivered another strong month of performance in February 2023, with every ILS fund represented in the Eurekahedge ILS Advisers Index reporting positive returns for the month, but with catastrophe bond funds leading the way.

Demonstrating that the catastrophe bond market is not softening endlessly, as some might believe based on the recent trend for pricing down, the price guidance for property insurtech Slide Insurance Company’s debut Purple Re Ltd. (Series 2023-1) cat bond has been adjusted towards the upper-end of guidance, we understand.

The Texas Windstorm Insurance Association (TWIA) has upsized its reinsurance target to as much as $450 million for its latest venture to the catastrophe bond market, focusing solely on the 144a cat bond notes through an Alamo Re Ltd. (Series 2023-1) issuance.