Catastrophe bonds and insurance-linked securities news

The Plenum CAT Bond UCITS Fund Indices have fallen by the largest percentage in their history after hurricane Ian, driving home the significant mark-to-market losses driven by the storm, as well as the expectation the cat bond market faces its largest single event losses on record.

Given the significant impacts of recent super typhoon Noru, locally known as Karding, which made landfall in Luzon on September 25th, we’ve learned that the Bureau of the Treasury of the Republic of the Philippines has now issued a notice to request its World Bank issued IBRD CAR 123-124 catastrophe bond undergo another event calculation […]

If the modelled loss estimate for hurricane Ian’s impacts to NFIP policies announced by RMS proves accurate, FEMA’s National Flood Insurance Program’s (NFIP) reinsurance tower and FloodSmart Re catastrophe bonds could pay-out in full.

The prices of some catastrophe bonds that have been marked down after major hurricane Ian slammed into Florida will recover, Plenum Investments believes, but it may take time and the cat bond market is expected to remain volatile over the coming weeks.

The US Federal Emergency Management Agency (FEMA) has reported that its National Flood Insurance Program (NFIP) has already received more than 25,000 claims from hurricane Ian.

Insurance-linked securities (ILS) and catastrophe bond funds, as a group tracked by ILS Advisers and Eurekahedge, have delivered their highest monthly return in almost two years in August 2022.

As is the case after any really major catastrophe loss event that is expected to impact reinsurance, insurance-linked securities (ILS) and catastrophe bonds, the fact cat bonds have a secondary liquidity element and can be traded is proving useful to some ILS managers and investors.

Our Artemis London 2022 conference a month ago was themed as a celebration of the catastrophe bond and our opening session of the day featured a fantastic keynote speech about the cat bond market and a lightning run through 25 landmark cat bonds from the first 25 years of the sector.

Insurance-linked securities (ILS) market sources had been forecasting a busy pipeline of catastrophe bond deals for the remainder of 2022 and into early 2023, but at the same time capital raising was not happening as quickly as some would like to have seen, leading to nerves about timing the market to source sufficient capacity and […]

The Florida insurance market capital stack is likely decimated after hurricane Ian’s landfall last week, raising the question of how this marketplace replenishes it and also highlighting the need for access to efficient sources of capital.