Cat bond news

TD Insurance, part of Canada’s TD Bank group, has now priced its debut MMIFS Re Ltd. (Series 2025-1) catastrophe bond deal, with the notes finalised to pay investors a risk spread at the bottom end of already reduced guidance, Artemis has learned.

GeoVera Insurance Holdings, Ltd. is back in the catastrophe bond market to sponsor its third transaction, which looks set to be its largest yet as it seeks $275 million of earthquake reinsurance protection from a Veraison Re Ltd. (Series 2025-1) cat bond issuance, Artemis can report.

Having recently secured $250 million of retrocessional reinsurance protection from its first catastrophe bond sponsorship since 2013, QBE executives have now said that the Bridge Street Re Ltd. (Series 2025-1) issuance is an “important enabler” and builds on the launch of its recent Bermudian balance-sheet entities.

Global reinsurance firm Swiss Re is back in the catastrophe bond market seeking $150 million or more in North American earthquake and named storm retrocessional protection from capital market investors, through a Matterhorn Re Ltd. (Series 2025-1) transaction.

More wildfires broke out in the Los Angeles area of California over night meaning the property damage has continued and early estimates from some of the insurance industry focused equity analyst teams suggest a potential industry loss in the $6 billion to as high as $13 billion range.

According to the latest news reports and a statement by the local fire chief, more than 1,100 structures are said to have been destroyed by the wildfires that continue to burn out of control in the Los Angeles, California suburbs.

Despite the tightening of catastrophe bond spreads seen through the second-half of 2024 the asset class remains elevated compared to US high-yield bond offerings, with investment manager Twelve Capital estimating cat bond spreads are around 280bps higher at this time.

The outbreak of dangerous and damaging wildfires in the Los Angeles area of California in the last day brings into focus the subject of potential further erosion for aggregate catastrophe bond attachments, according to cat bond fund manager Icosa Investments.

Hannover Re has returned to the catastrophe bond market in search of $175 million or more in broad retrocession covering worldwide peak perils on an annual aggregate basis, from a 3264 Re Ltd. (Series 2025-1) transaction that is being offered to investors, Artemis can report.

We are now just one month away from our next catastrophe bond and insurance-linked securities (ILS) conference. Our Artemis ILS NYC 2025 event is being held in New York on February 7th. Tickets are still available but selling fast, so please register soon to ensure you can join us at the event.