Cat bond news

The entry of market makers to enhance liquidity options in the secondary market for trading catastrophe bonds would be a dream come true, speakers suggested at the SIFMA ILS 2025 conference in Miami yesterday.

Qube Research & Technologies (QRT), a global quantitative and systematic investment manager that specialises in a technology and data-driven approach to allocation across liquid asset classes, has hired Securis catastrophe bond portfolio management specialist Raphael Rayees, the company has confirmed.

The California Earthquake Authority (CEA) shrank its risk transfer tower through the January renewals, as its traditional reinsurance placements saw further contracts expire, resulting in its catastrophe bonds making up a larger share of the overall at now more than 31%.

If the mid-year 2025 reinsurance renewals see relatively flat pricing, commentary from the recent AIFA conference by analysts at Autonomous Research suggests this could be a catalyst for more capital coming off the sidelines and into the insurance-linked securities (ILS) market.

Discussing the road to a $200 billion insurance-linked securities (ILS) market at the SIFMA ILS 2025 conference in Miami today, speakers stressed that considered deployment of capital at reasonable pricing and terms will be critical to continuing and perhaps accelerating the current growth trajectory.

With American Integrity Insurance Company securing its largest catastrophe bond to date, the $565 million Integrity Re III Ltd. (Series 2025-1), CEO Robert Ritchie stated that the issuance reflects the strong confidence and enthusiasm of insurance-linked securities (ILS) investors for the Florida market.

Flood Re, the state-backed flood reinsurance pool in the United Kingdom, has increased the target size for its debut catastrophe bond, with now UK £140 million in fully-collateralized flood retrocessional reinsurance sought from the London Bridge 2 PCC Limited (Vision 2039 – 2025-1) transaction.

RenaissanceRe, the Bermuda-based reinsurance company and third-party ILS capital manager, has now officially launched its first UCITS compliant property catastrophe bond fund strategy, the RenaissanceRe Medici UCITS Fund, with $340 million of capital allocated, confirming our reporting from three months ago.

Heritage Insurance Holdings, Inc., the nationally expansive, Florida headquartered property and casualty insurer, has now secured its targeted $200 million of reinsurance from the new Citrus Re Ltd. (Series 2025-1) catastrophe bond issuance, as the notes have now been priced at reduced levels.

SafePoint Insurance Company is back in the catastrophe bond market, with a target to secure $100 million in reinsurance protection from capital market investors through a Nature Coast Re Ltd. (Series 2025-2)  issuance, which sees the company back looking for indemnity, per-occurrence coverage.