Catastrophe bonds and insurance-linked securities news

We asked our insurance-linked securities (ILS) focused readers for their thoughts as to how large the Hurricane Ian mark-to-market implied loss to catastrophe bonds could be, when pricing sheets were marked on Friday.

Plenum Investments has published an update on the potential for losses to catastrophe bonds after major hurricane Ian’s impacts in Florida, saying that, at an industry loss level estimated to be around $50 billion, its cat bond funds could suffer a loss of roughly one annual target return in USD.

It feels a little negative to focus on just two ILS fund strategies in this way, but as the Stone Ridge Asset Management mutual insurance-linked securities (ILS) and catastrophe bond funds are the only ones that are priced on a daily basis, they are providing valuable insights for the rest of the ILS market in […]

Gallagher Securities, the insurance-linked securities (ILS) and capital markets broker-dealer division of reinsurance broker Gallagher Re, has made a key hire in Jason Bolding, who was most recently at Credit Suisse.

Coming on the heels of five heavy catastrophe loss years, major hurricane Ian’s impacts in Florida and the resulting insurance, reinsurance and ILS market loss, could trigger a wholesale reevaluation of the provision of catastrophe insurance protection, according to Michael Millette.

Hurricane Ian’s impact is likely to cause losses to some Florida focused indemnity catastrophe bonds, as well as to some of the NFIP’s FloodSmart Re cat bond series, according to investment manager Twelve Capital.

Another indication of the impacts of hurricane Ian for the insurance-linked securities (ILS) market is in how the publicly available net asset values of mutual catastrophe bond, ILS and reinsurance linked investment funds have been moving.

Some further insight on the potential quantum of industry loss faced by the insurance, reinsurance and ILS market from major hurricane Ian, as KBW analyst Meyer Shields said he believes the relatively rapid weakening of the storm after landfall could mean losses settle closer to the bottom of a $32.5 billion to $40 billion range.

According to sources of and data seen by Artemis, last night catastrophe risk modelling specialists had been hinting at major hurricane Ian having the potential to deliver a global insurance, reinsurance and ILS market loss of more than $50 billion, in updates sent to their clients.

In the wake of hurricane Ian, it’s going to be particularly challenging to have an accurate view of catastrophe bond market impacts in the short-term, which we’re being told could result in a particularly far-reaching mark-down of cat bond names on brokers’ secondary pricing sheets this Friday.