Catastrophe bonds and insurance-linked securities news

Driving home the continued uncertainty over the eventual insurance, reinsurance and insurance-linked securities (ILS) market impact from hurricane Ian, investment manager Twelve Capital said that modelled loss scenarios range from substantial to nothing for its ILS portfolios.

The Philippines World Bank facilitated catastrophe bond is deemed “likely to default” after the landfall and impacts of super typhoon Noru, according to investment fund manager Plenum Investments.

In the space of just 24 hours, typhoon Noru has explosively intensified into super typhoon Noru as it approaches the Philippines and now packing sustained winds of more than 150 mph the storm is a potential threat to the countries World Bank facilitated catastrophe bond.

The catastrophe bond market is very well-positioned, with cedent interest in utilising cat bonds as reinsurance risk transfer tools on the rise, while pricing has already risen high enough to attract investors to deploy more capital, according to GC Securities Shiv Kumar.

Christophe Fritsch, a well-known executive in the insurance-linked securities (ILS) market, given his long history working at AXA Investment Managers with a focus on the sector, has now been promoted to Global Head of Alternative Credit at the asset manager.

The government of Singapore continues to look to the capital markets to push the boundaries in developing its insurance and reinsurance market, with an ambition to further develop the ability of the sector to tap capital market appetite for risk.

In a positive signal for the continuing use of private insurance and reinsurance capital to support the country’s natural disaster and catastrophe insurance needs, the Mexican government has renewed a $250 million layer of traditional catastrophe protection.

Mortgage insurer Essent Guaranty, a wholly owned subsidiary of Essent Group Ltd., has completed its latest insurance-linked securities (ILS) placement, securing $237.9 million of fully collateralised excess of loss reinsurance via Bermuda-based special purpose insurer (SPI), Radnor Re 2022-1 Ltd.

The fifth and final panel session of our ILS NYC 2022 conference, that was held in New York back in April, saw our expert moderators from earlier sessions at the event come together to discuss some of the main threads of conversation from the day.

Reinsurance rates are likely to rise by mid-teens at least at the next renewals as this will only just cover inflation and climate change related effects, with more needing to be added on top to cover cost-of-capital, analysts at Peel Hunt have suggested.