Catastrophe bonds and insurance-linked securities news

The World Bank has approved $500 million of funding for Indonesia to help the country enhance its financial response to natural disasters, climate risks, and health-related shocks, with the use of risk pooling, and insurance or reinsurance instruments at the heart of the plan.

The targeted size of the second parametric earthquake catastrophe bond for specialist mortgage security focused investment manager Bayview Asset Management, LLC looks like it could increase in size by as much as one-third, with the upper target for the Sierra Ltd. (Series 2021-1) cat bond deal now lifted to $200 million.

Bermuda has benefited from a robust year for insurance-linked securities (ILS) and other areas of reinsurance related investment through 2020, with assets under management of investment funds located in the domicile increasing during the year, as new private and closed fund structures have also been established.

Inflows to the insurance-linked securities (ILS) asset class are expected to rise over the coming months, as investor appetite increases, according to Fabrice Rossary, the Chief Investment Officer of SCOR Investment Partners.

Eclipse Re Ltd., the Horseshoe managed private syndicated collateralised reinsurance note, private catastrophe bond issuance and transformer platform, has brought its first deal to market of 2021, an $80 million Eclipse Re Ltd. (Series 2021-01A) issuance.

Hannover Re, the German headquartered global reinsurance firm, has facilitated another three Seaside Re private catastrophe bond transactions around this January 2021 renewals, taking the total seen to $136.4 million across ten transactions.

Insurance-linked securities (ILS) strategies focused on peak peril exposures deliver capital to the locations “where it is needed the most” in the insurance and reinsurance industry, so providing enhanced returns and supporting the traditional re/insurance market, ILS fund manager Twelve Capital has said.

Global reinsurance company Hannover Re has facilitated more private catastrophe bond transactions around this Janaury 2021 renewals, with the firms Kaith Re transformer having issued $76.4 million of Seaside Re cat bond lite notes, across seven transactions.

London Bridge Risk PCC Limited, the newly established insurance-linked securities (ILS) vehicle sponsored by Lloyd’s, will “reduce the frictional costs and time” required for ILS investors to access the returns of the insurance and reinsurance market, law firm Clifford Chance has said.

With Brazil’s government having recently formalised and published legislation related to special purpose reinsurance transformer vehicles and insurance-linked securities (ILS) issuance, the country’s insurance regulator Susep has said it hopes the regime will reduce reinsurance costs for carriers.