Catastrophe bonds and insurance-linked securities news

Two tranches of notes designed to provide aggregate reinsurance protection have been pulled from the latest catastrophe bond issuance for Japanese insurance carriers owned by MS&AD Insurance Group Holdings, as the Tomoni Re Pte Ltd. transaction now targets up to $245 million of occurrence protection only.

Current market conditions make allocating to the catastrophe bond asset class a particularly attractive prospect for investors at this time, according to Twelve Capital Founding Partner & Group CIO, Dr. Urs Ramseier.

Reinsurance and retrocession pricing is set to benefit from an expected continued reduction in available alternative or insurance-linked securities (ILS) capital, according to Moody’s Investors Service.

While Florida’s Citizens Property Insurance Corporation could buy as much as $3.4 billion of new reinsurance and risk transfer in 2022, including catastrophe bonds, the main focus is on delivering value, as the not-for-profit property insurer targets cost savings.

Inigo Insurance, the London headquartered and Lloyd’s market focused specialty insurance and reinsurance underwriter, is now targeting an upsize for its Montoya Re Ltd. (Series 2022-1) multi-peril catastrophe bond, which we’re told could grow to provide as much as $115 million in reinsurance for the company.

The Board of the Texas Windstorm Insurance Association (TWIA) has voted to adopt a multi-model view of risk for 2022, with its newly derived 1-in-100 year probable maximum loss driving a decision to secure a roughly $2.04 billion tower of reinsurance and catastrophe bonds for 2022.

The board of the California Earthquake Authority (CEA) has voted to approve a motion for the insurer to buy sufficient risk transfer to support claim-paying capacity at no less than the 1-in-350 year level and no greater than the 1-in-500 year level.

As the US Securities & Exchange Commission (SEC) publishes a new set of proposed rules on climate risk disclosure, it’s becoming increasingly clear regulating for climate risk reporting is going to drive risk management and risk transfer spend, with ramifications and opportunity for insurance, reinsurance and insurance-linked securities (ILS).

According to Artemis’ sources, the price guidance has been raised for the first catastrophe bond to be sponsored by Inigo Insurance, the London headquartered and Lloyd’s market focused specialty insurance and reinsurance underwriter.

Florida’s Citizens Property Insurance Corporation is debating buying anything from zero to over $3.4 billion of new reinsurance and risk transfer in 2022, with catastrophe bonds an option as usual.