Cat bond news

According to a new report from King Ridge Capital Advisors (KRCA), catastrophe bonds are offering more opportunities for bond and multi-asset fund managers to diversify their portfolios, reduce correlations and improve risk-adjusted returns.

Sven Althoff, Member of the Executive Board for Property & Casualty (P&C) of large European reinsurer Hannover Re said this morning that catastrophe bonds have been the main area of expansion for the company within the insurance-linked securities (ILS) space, noting that it is a “nicely growing part” of the firm’s business.

Fidelis is set to benefit from a roughly $98 million additional retrocessional reinsurance recovery from its aggregate industry-index trigger Herbie Re Ltd. (Series 2021-1) catastrophe bond, as losses from the California wildfires, added to those from hurricanes Helene and Milton earlier in the risk period, have eaten into the remaining principal of these notes.

The Healthcare of Ontario Pension Plan (HOOPP), a large Canadian institutional retirement fund, has expanded its investment allocation to insurance-linked securities (ILS) by approximately 39% in 2024, lifting its investments in the ILS market to approximately US $1.32 billion.

AXIS Capital, the global specialty insurance and reinsurance underwriter, has now upsized its target for its latest catastrophe bond, increasing it to now seek $200 million in North American named storm and earthquake protection from the Northshore Re II Ltd. (Series 2025-1) issuance, Artemis has learned.

Reinsurance broker Gallagher Re recently launched its Cyber Risk Adjusted Rating (RAR) Index, revealing that its value was 100% higher on January 1st, 2025, compared to January 1st 2020, indicating higher rates-on-line, as the cyber market continues to grow amid an evolving risk landscape.

Miami International Holdings, Inc. (MIH) has announced that it has launched a fully-integrated trading, clearing, settlement and depository technology platform for the Bermuda Stock Exchange (BSX), which is a wholly-owned subsidiary of MIH, in a move that marks a significant step in modernising the BSX’s market infrastructure.

The Government Superannuation Fund Authority of New Zealand reported that its catastrophe bond and catastrophe insurance-linked securities (ILS) investments delivered a 14.7% return in the year to mid-2024, one of the strongest performing investment categories in its portfolio.

We’re told that US primary insurer Allstate has for a second time increased the target size for its new Sanders Re II Ltd. (Series 2025-1) catastrophe bond issuance, with a further increase to one of the tranches of notes and the overall deal now targeting $750 million in collateralized catastrophe reinsurance for the company.

Pool Re, the UK government-backed mutual terrorism reinsurance facility, has returned to the catastrophe bond market as anticipated, seeking UK £100 million or more in protection from a second renewal of its landmark terror catastrophe bond, with a Baltic PCC Limited (Series 2025-1)  issuance.