Catastrophe bonds and insurance-linked securities news

The value of insurance-linked securities (ILS) as a diversification play within asset portfolios is now even higher, as falling government bond yields have made other diversifiers less attractive at a time when ILS is only increasing its value proposition to investors.

Having already increased the target size of its first catastrophe bond by one-third, Allied World Assurance Company (AWAC), a global insurance and reinsurance company and part of the Fairfax Financial group, has now lifted the target a little more, with the latest marketed size of the 2001 CAT Re Ltd. (Series 2020-1)  transaction now $210 […]

Although the last four years have been a challenging time for the ILS market in many ways, one positive development is that investors have become more discerning in their choice of fund managers, which could lead to the disappearance of “indifferent” funds, Quentin Perrot tells Artemis.

After years of impressive growth, the volume of available alternative reinsurance capital has “stagnated” and with little growth expected for the remainder of 2020 and into next year, a structural breakthrough might be needed, according to analysis by Fitch Ratings.

Allied World Assurance Company (AWAC), a global insurance and reinsurance company and part of the Fairfax Financial group, aims to increase the size of its first catastrophe bond deal, with the 2001 CAT Re Ltd. (Series 2020-1)  multi-peril issuance now targeting $200 million of reinsurance limit for the company.

Louisiana Citizens Property Insurance Corporation, the non-profit state mandated insurer of last resort in storm hit Louisiana, has seen the hit to its portfolio from recent hurricanes significantly softened by its reinsurance program.

The flight to quality in the insurance-linked securities (ILS) market has been well-documented, as some investors have opted to shift allegiance to ILS fund managers that are deemed higher quality, due to their longevity, track-records, or affiliations.

Alphabet, Inc., the holding company for Google and its many units, has entered the catastrophe bond market for the first time, as the technology giant seeks $237.5 million of earthquake insurance protection that will be fully collateralized through the issuance of a Phoenician Re Ltd. (Series 2020-1)  cat bond transaction to capital market investors.

Allied World Assurance Company (AWAC), a global insurance and reinsurance company and part of the Fairfax Financial group, is set to sponsor its first ever catastrophe bond, with a $150 million targeted issuance of this new 2001 CAT Re Ltd. (Series 2020-1)  multi-peril transaction.

The market for catastrophe bonds and related insurance-linked securities (ILS) has already broken the annual record for number of deals issued in 2020, as this year remains on-track to break the record for the dollar-amount issued as well.