Cat bond news

Recent spread development in the catastrophe bond space has boosted the forward return potential of cat bond funds, but for those investors that had more concentrated exposure to industry-loss index trigger cat bonds the moves have dented performance.

SageSure, the coastal property managing general underwriter, is back in the catastrophe bond market seeking county-weighted industry-loss trigger coverage for named storm and hurricane risks for a second time, with a currently $50 million Gateway Re Ltd. (Series 2024-4) issuance.

While the broad trend for much of the catastrophe bond market has been one of spread widening since April, one category of cat bond deals has seen prices hold-up far better than most, the cyber catastrophe bond segment.

Analysts at BofA Securities Inc. have highlighted that while catastrophe bonds remain a complementary source of capital rather than pure competition for reinsurance carriers, that could change in time, but the analysts see any resurgence in the private ILS and collateralized reinsurance space as a more pressing threat to traditional players.

Everest Re, the global reinsurance arm of Everest Group, has returned to the catastrophe bond market in search of $150 million or more in multi-peril per-occurrence retrocession, through a Kilimanjaro II Re Ltd. (Series 2024-1) issuance, Artemis has learned.

There are now just a few days left to secure the Early Bird rate for our upcoming ILS Asia 2024 catastrophe bond and insurance-linked securities (ILS) market conference in Singapore on July 11th. The Early Bird rate will expire this Sunday.

The California Earthquake Authority (CEA) has maintained its reinsurance and catastrophe bond tower at $9.1 billion in size through the start of 2024, with its most recent renewals for April 1st seeing the insurer securing almost $1.2 billion in protection.

The use of third-party capital by reinsurance companies is expected to remain a key lever for the sector, as they seek to expand and take advantage of increasing demand for their coverage, S&P Global Ratings has said.

PGGM, the Dutch pension investment manager that is the largest single allocator to the insurance-linked securities (ILS) market on behalf of end-client pension PFZW, has issued a call for ILS fund managers to provide more data and transparency.

New Zealand’s EQC Toka Tū Ake, previously known as the New Zealand Earthquake Commission, has added more limit to its reinsurance tower, lifting the top by $1 billion for 2024, in a renewal securing $9.2 billion of cover for disaster losses in the country.