Cat bond news

The Texas Windstorm Insurance Association (TWIA) has said that with it estimating losses of $400 million from hurricane Beryl making landfall in the state, it now believes most if not all of its Catastrophe Reserve Trust Fund (CRTF) may be eroded, something that will have implications for its funding and maybe for its reinsurance buying.

Hiscox ILS, the dedicated insurance-linked securities (ILS) management arm of the global re/insurer, has successfully raised gross inflows amounting to $300 million in the first-half of 2024, with capital from new and existing investors flowing to its collateralized reinsurance sidecar and ILS funds.

Insured losses from hurricane Debby are expected to largely fall within primary insurers’ reinsurance retentions, according to James Eck of Moody’s Ratings.

As hurricane Debby slowly moves inland over the Florida Panhandle and into Georgia and beyond, specialist catastrophe bond fund manager Plenum Investments has said it does not expect insured losses from the storm will negatively affect its cat bond funds.

The broad benchmark index for insurance-linked securities (ILS) funds, the Eurekahedge ILS Advisers Index, has delivered a 4.37% return for the first six months of 2024, which is the third best half-year performance in its history.

As hurricane Debby approaches landfall, given the relatively sparsely populated landfall region the insurance and reinsurance industry exposure will be more limited, which has led investment manager Icosa Investments AG to say it does not expect any substantial impacts to catastrophe bonds from the storm.

At the mid-year reinsurance renewals, US primary insurance giant Allstate has shrunk its Florida excess-of-loss tower again, opting for a lower-level of protection in the state, but has continued to build-out its Nationwide protection, adding again to the top-layer of that tower.

Here are the ten most popular news articles, week ending August 4th 2024, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

AIG believes the collateralized reinsurance market is recovering and is back at its highest level, in limit terms, since 2016. In addition, the company believes it buys roughly 50% of global aggregate capacity provided by the ILS market, according to its CEO Peter Zaffino.

Today we are pleased to announce some more speakers who will be joining our catastrophe bond and insurance-linked securities (ILS) market conference in London on Tuesday September 3rd. Early Bird tickets for Artemis London 2024 are still available, so register soon to secure the best price attendance.