Cat bond news

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.

Aon Securities, the investment banking and insurance-linked securities (ILS) specialist arm of the insurance and reinsurance broker, is anticipating a strong start to catastrophe bond and ILS market activity in 2025, with a “vibrant” market and plenty of deal flow forecasted.

Inigo Insurance has returned to the catastrophe bond market to sponsor its fourth issuance, with a $100 million initial target for this Montoya Re Ltd. (Series 2025-1) deal, which is the first cat bond from Inigo to feature multiple tranches, one being a new subsequent event cover, Artemis has learned.

By the end of September this year, the amount of alternative capital in the reinsurance industry had increased by 5% over the nine-months of 2024, to reach another new high of $113 billion, helped by retained earnings and catastrophe bond market inflows, broker Aon has said.

Catastrophe bond fund strategies in the UCITS format have averaged a 13.62% return for full-year 2024, according to the latest data from the Plenum CAT Bond UCITS Fund Indices.

TD Insurance, part of Canada’s TD Bank group, is now aiming to reduce the pricing for its debut MMIFS Re Ltd. (Series 2025-1) catastrophe bond deal, with the price guidance having fallen for the issuance that targets C$150 million in reinsurance from the capital markets for the company, Artemis can report.

Aetna, the health, medical and benefits insurance unit of CVS Health, is back in the insurance-linked securities (ILS) market and seeking what could become its largest issuance in the long-standing Vitality Re series, as the firm’s sixteenth transaction launches with a target for $250 million of reinsurance from a Vitality Re XVI Ltd (Series 2025) […]