Catastrophe bonds and insurance-linked securities news

USAA has successfully secured the upsized target of $400 million of reinsurance limit from its latest catastrophe bond transaction, with the two lower-risk tranches of the Residential Reinsurance 2020 Limited (Series 2020-2) transaction pricing down significantly for the insurer.

The Philippines government’s World Bank facilitated IBRD CAR 123-124 catastrophe bond transaction is under threat from typhoon Goni, which may cause a partial loss of principal for investors in the cat bond if it maintains significant wind speeds as it approaches Manila.

Insurance-linked securities (ILS) and catastrophe bond investors were supportive of the first mortality bond to feature an indemnity trigger, according to Willis Re Securities who structured and placed the deal.

The impacts and eventual insurance market losses from hurricane Zeta’s landfall on the Louisiana Gulf Coast is not expected to result in any direct losses to catastrophe bonds, but may move the price on certain aggregate cat bonds, according to Plenum Investments.

Cerulean Re SAC Ltd., the private catastrophe bond and insurance-linked securities (ILS) issuance vehicle operated by reinsurance broker Guy Carpenter and Marsh Captive Solutions, has completed another issuance and listed three tranches of Cerulean Re SAC Ltd. (Series 2020-B) notes.

U.S. primary mutual insurer USAA has increased its target size for its latest catastrophe bond, with the insurer now aiming to secure as much as $400 million of multi-year, fully collateralized, multi-peril catastrophe reinsurance protection from the capital markets with its new Residential Reinsurance 2020 Limited (Series 2020-2) transaction.

Large loss events in the third-quarter of 2020 dented performance at Bermuda based reinsurance firm RenaissanceRe’s third-party capital joint ventures and managed insurance-linked securities (ILS) funds, resulting in a decline in performance fees.

The insurance-linked securities (ILS) market has performed admirably through the COVID-19 pandemic, demonstrating that the capital markets remained largely open for transfers of risk and that even under extreme risk scenarios ILS investors can be relied upon to support protection buyers need for risk capital.

Securian Financial recognises the capital efficiencies gained from becoming the first U.S. direct writer of life insurance to tap into the capital markets for reinsurance protection using a mortality catastrophe bond, after its $100 million La Vie Re Limited (Series 2020-1)  transaction completed.

The California Earthquake Authority’s (CEA) reinsurance program has reached a new record high in terms of size at nearly $9.6 billion, which is up almost $1 billion since the January renewals.