Catastrophe bonds and insurance-linked securities news

Even with the losses from hurricane Ian hanging over the insurance-linked securities (ILS) market, Liechtenstein-based private bank VP Bank AG maintains an overweight view on the asset class and sees the rising premiums to come as an “entry opportunity” for investors.

Florida’s property insurer of last resort Citizens Property Insurance Corporation said Friday that it is now estimating a hurricane Ian claim-count of around 100,000, down dramatically from its earlier assessment of a burden of over 225,000 claims being anticipated.

A capacity crunch in property catastrophe reinsurance is becoming “ever more likely” according to analysts at Peel Hunt, but importantly they highlight that even at the estimates for the level of industry losses it will cause, hurricane Ian should still fall within the sectors risk appetite.

A new preliminary prospectus for an ESG focused exchange traded fund that will invest in insurance-linked securities (ILS) and reinsurance-linked assets that have exposure to climate risk has been launched by Impact Shares, an ESG focused investment operator.

During a panel discussion at the ILS Bermuda Convergence 2022 event yesterday, Michael Millette told the audience that while the quantum of loss matters after hurricane Ian, with such a range of estimates, the risk is that cedents will all seek to trap capital as if the industry impact is going to be $70 billion […]

Hurricane Ian will prove to be a “trial by fire” for the legislative reforms enacted in Florida to improve the situation in its insurance marketplace, and today there were questions about whether those reforms are enough among speakers at the ILS Bermuda Convergence 2022 event.

The National Flood Insurance Program’s (NFIP) reinsurance tower is coming into view of the rising hurricane Ian claims burden, as NFIP claims filed have now surpassed 35,000, according to the US Federal Emergency Management Agency (FEMA).

The notes associated with the remaining $97.5 million of principal from the Philippines governments World Bank issued IBRD CAR 123-124 catastrophe bond that is exposed to tropical cyclones have now been marked down implying a total loss is expected by the market after super typhoon Noru, Artemis has learned.

There are likely to be some retrocession market wildcards in the wake of hurricane Ian at the next major set of reinsurance renewals on January 1st 2023, according to Moody’s Investors Service.

The value of insurance-linked securities (ILS) held in the dedicated mutual ILS investment fund operated by Amundi US Investment Management, the Pioneer ILS Interval Fund, almost caught up with their cost in the last quarter of record.