Cat bond news

If now major hurricane Milton results in “material” losses for reinsurance capital providers, analysts at KBW have said that this could change the expected trajectory of property catastrophe reinsurance pricing at renewals in 2025.

We understand from sources that, as early as yesterday, some catastrophe bond and insurance-linked securities (ILS) investment fund managers began exploring their options to free up cash from their portfolios in order to be ready for any potential losses, or to take advantage of market opportunities that emerge, due to now major hurricane Milton.

Hurricane Milton has strengthened into a 100 mph storm and is expected to become a major hurricane later today. The NHC has now begun including storm surge height indications in its updates on Milton and from-the-off they call for between 8 and 12 feet of storm surge to impact Tampa Bay.

As hurricane Milton heads towards Florida, the developing storm situation poses the biggest potential threat to the insurance-linked securities (ILS) market since hurricane Ian in 2022, according to Florian Steiger, the CEO of catastrophe bond investment manager Icosa Investments AG.

Here are the ten most popular news articles, week ending October 6th 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.

The Gulf Coast of Florida is facing another hurricane landfall, as tropical storm Milton formed this weekend and has already become a hurricane, with additional rapid intensification forecast and a major hurricane Milton landfall possible that many say has the potential to cause meaningful insurance and reinsurance market losses.

Investment manager Amundi US has continued to attract capital to its most recently launched dedicated insurance-linked securities (ILS) fund strategy, as the Pioneer CAT Bond Fund has now reached $426 million in assets, now roughly tripling in size over the course of 2024 so far.

Aon has announced a key change in its insurance-linked securities (ILS) and investment banking business leadership, as Richard Pennay has been named the new CEO of Aon Securities and Paul Schultz moves to become Global Vice Chair of Reinsurance at the company.

Here’s a reminder to register for our upcoming live insurance-linked securities (ILS) focused webinar on October 31st 2024, in which our industry expert speakers will explore the state of the catastrophe bond and broader ILS market, as well as the outlook for 2025.

In the month of September 2024, the overall yield of the catastrophe bond market declined further as the effects of hurricane seasonality accelerated, while also adding to the decline is a gradual reduction in the cat bond market collateral yield, as lower interest rates begin to have an effect.