Catastrophe bonds and insurance-linked securities news

ICAT Syndicate 4242 first catastrophe bond, Buffalo Re Ltd. (Series 2017-1), appears to have been well-received by insurance-linked securities (ILS) investors, helping the transaction to increase in size to $164.5 million while marketing, as price guidance dropped at the same time.

Investing in catastrophe bonds is viewed as an attractive investment by some primary insurance companies, with the implementation of Solvency II meaning the assets can have certain capital benefits, depending on an insurers profile.

The pricing guidance for insurer Heritage’s recently launched $125 million Citrus Re Ltd. (Series 2017-1) catastrophe bond has fallen again, now being fixed at the bottom end of the lowered coupon guidance range.

Angus Duncan, an insurance-linked securities (ILS) experienced lawyer, has joined the London office of Winston & Strawn LLP as a partner, bringing experience in catastrophe bonds, reinsurance sidecars and other ILS structures to the firm.

The diversification benefits of the insurance-linked securities (ILS) space offer real value to the asset classes growing investor base, says GC Securities’ Cory Anger.

Coupon price guidance for the recently launched $125 million Citrus Re Ltd. (Series 2017-1) catastrophe bond has been lowered significantly, as investor demand for cat bond investments looks set to offer sponsors very attractive conditions.

The development of innovative insurance-linked securities (ILS) vehicles could enable the capital markets to assume some of the world’s growing cyber exposure, according to the first Sigma report from the Swiss Re Institute.

Swiss Re Capital Markets remains hopeful that 2017 will be the year of the catastrophe bond as large, global sponsors return from a market hiatus and the current pricing environment combines with true complimentary capital, says Judy Klugman.

The World Bank is working hard on its initiative that it terms the “first-ever insurance market for pandemic risk”, the Pandemic Emergency Financing Facility (PEF) and hopes to see a transaction come to market this year.

The insurance-linked securities (ILS) market has a role to play in cyber risks, according to the former Secretary of the U.S. Department of Homeland Security and now Chairman of Ridge Global, Tom Ridge.