Catastrophe bonds and insurance-linked securities news

Two of the leading Japanese primary insurance carrier groups have revealed an expectation that Typhoon Faxai will cause them each around US $1 billion of gross losses.

German big four global reinsurance player Hannover Re continues to leverage the insurance-linked securities (ILS) market and appetite of investors for insurance related returns both for its own benefit, in terms of risk transfer, to support its clients needs and to generate fee income.

A $70 million parametric Japanese earthquake private insurance-linked securities (ILS) transaction has been issued using Aon Insurance Managers segregated accounts company White Rock.

Reinsurance recoveries from one of its catastrophe bonds have continued for U.S. primary insurer Nationwide Mutual Insurance Company, which has now recovered almost $25 million in loss payments from its Caelus Re V Ltd. (Series 2017-1) Class D tranche of notes.

In the main, funds investing in insurance-linked securities (ILS) and collateralised reinsurance are expecting any losses from hurricane Dorian that flow to the sector will be largely attritional in nature.

Insurance and reinsurance group Argo has again elected to extend the maturity date further on its at-risk aggregate multi-peril catastrophe bond Loma Reinsurance (Bermuda) Ltd. (Series 2013-1).

Insurance-linked securities (ILS) and catastrophe bond issuance is likely to “materially increase” over the next nine months, according to Jean-Louis Monnier, Head of Retro & ILS Structuring and Origination at global reinsurance firm Swiss Re.

Blerina Essen, the Managing Director of UK-based lottery provider MyLotto24 and someone who worked on and sponsored some of the earliest lottery jackpot insurance-linked securities (ILS) transactions, is to consult and advise to gaming services provider RISQ on reinsurance and hedging.

The availability of advanced data analytics is expected to increase and in some instances, this could accelerate the broadening of risks that are placeable in the insurance-linked securities (ILS) market, says Swiss Re’s Global Head of P&C Solutions, Eric Schuh.

Mark-to-market losses to some hurricane Dorian exposed catastrophe bonds is set to dent August for a number of pure cat bond fund strategies, as end of month marks did not factor in the changes in forecast path.