Catastrophe bonds and insurance-linked securities news

Dutch headquartered European market focused insurance group Achmea has returned to the catastrophe bond market to sponsor a roughly $90 million Windmill II Re DAC (2020) transaction, which will be the companies third cat bond transaction.

The continuation of the Covid-19 coronavirus pandemic into the 2020 Atlantic hurricane season is set to compound challenges for insurance, reinsurance and ILS capacity providers this year, according to Fitch Ratings.

Guide pricing for Avatar Property and Casualty Insurance Company’s new $65 million Casablanca Re Pte. Ltd. (Series 2020-1) catastrophe bond issuance has been hiked by 16%-18%, as insurance-linked securities (ILS) investors continue to demonstrate their requirement for higher returns and cat bond rates reflect the hardening Florida reinsurance market.

U.S. primary insurance carrier State Farm has returned to the capital markets to source fully collateralised reinsurance again, sponsoring a new $250 million privately placed and issued Merna Re II Ltd. (Series 2020-1) catastrophe bond transaction.

The Texas Windstorm Insurance Association’s (TWIA) new Alamo Re II Pte. Ltd. (Series 2020-1) catastrophe bond issuance has successfully been doubled in size thanks to strong demand from investors and will now provide the residual market property insurer $400 million of reinsurance protection.

Issuance of new catastrophe bonds has continued to be brisk over the last few weeks, with repeat sponsors helping to drive total catastrophe bond and related insurance-linked securities (ILS) issuance for 2020 to-date above $7.2 billion, according to Artemis’ Deal Directory data.

Swiss Re Corporate Solutions (SRCS), the commercial risk taking entity of global reinsurance firm Swiss Re, has launched a parametric hail insurance product in the United States, citing the growing level of losses experienced from severe thunderstorm risks as driving the need for innovative protection.

The Florida Hurricane Catastrophe Fund (FHCF) has decided not to renew its reinsurance program in 2020, citing reduced reinsurance market capital levels and in response to the firming marketplace.

Allianz Risk Transfer, a specialist and alternative risk focused unit of the Allianz global insurance and reinsurance group, is back in the catastrophe bond market with a $100 million Blue Halo Re Ltd. (Series 2020-1) transaction, the first by the issuer in four years.

The Texas Windstorm Insurance Association (TWIA) has lifted its target for the recently launched Alamo Re II Pte. Ltd. (Series 2020-1) catastrophe bond issuance, with as much as $400 million of reinsurance capacity from the capital markets now on the cards.