Catastrophe bonds and insurance-linked securities news

European insurance giant Assicurazioni Generali is set to upsize its innovative motor third-party liability ILS deal Horse Capital I DAC, as the targeted transaction size has risen from €180m at launch to a new target of between €210m to €240m (US$255m).

Amundi, the largest European asset manager in terms of AuM, has acquired Pioneer Investments, a global asset manager with a strong focus on insurance-linked securities (ILS) and over $1.65 billion invested in insurance and reinsurance linked assets.

The complexity of sophisticated insurance-linked security (ILS) structures has resulted in an intelligent and mature investor base, but the high entry barrier could also be hindering the growth potential of the marketplace, warns Matthew Feig, Special Counsel at law firm Cadwalader, Wickersham & Taft.

XL Catlin companies are returning to the catastrophe bond market seeking $1 billion of capital markets backed reinsurance protection with twin Galilei Re Ltd. (Series 2016-1) and Galilei Re Ltd. (Series 2017-1) issuances.

Insurance solutions enhance the financial response capacity of countries in the face of natural disasters, and more and more regions are showing a willingness to improve risk management and utilise ex ante solutions, according to Joaquim Levy of the World Bank.

The recently completed $200 million Bonanza Re Ltd. (Series 2016-1) catastrophe bond, which secured sponsor American Strategic Insurance Group a slice of named storm and severe thunderstorm reinsurance protection, saw the lowest relative price in the history of ILS for a deal with significant Florida exposure.

A proposal for principles on which the U.S. National Flood Insurance Program (NFIP) should be reauthorised and reformed calls for the use of both traditional and capital market alternatives forms of risk transfer and reinsurance to support de-risking the government backed flood insurance facility.

As the UK government continues to develop and advance its ambition of turning London into a global hub for insurance-linked securities (ILS) business, international law firms have highlighted some uncertainties and potential shortcomings of the new guidelines.

Investment bank Credit Suisse’s Operational Re Ltd. ILS transaction, which saw a catastrophe bond structure used to secure insurance via the capital markets for its operational risk exposures, has helped the bank to reduce its risk weighted assets (RWA’s) by 1.25 billion Swiss Francs, according to a report.

We are delighted to announce some more speakers for our upcoming conference, Artemis ILS NYC 2017, which will be held in the heart of Manhattan, New York on February 3rd 2017. Early Bird ticket rates will expire soon, so we advise you to register in the near future.