Cat bond news

Groupama has now secured its targeted €150 million of multi-year and fully-collateralized windstorm reinsurance protection from the new Quercus Re DAC 2024-1 catastrophe bond issuance, while the coverage has been secured at reduced pricing, as the notes priced at the lower end of initial guidance, Artemis has learned.

Depending on the outcome of the hurricane season and the occurrence of other catastrophes, investors in catastrophe bonds could be on-track to meet or even exceed target returns in 2024, with cat bond market yields still elevated and the fundamentals of the insurance-linked securities (ILS) market strong, analysis from Twelve Capital explains.

Reinsurance broker Guy Carpenter is rolling out a new parametric flood product that has been designed to enable risk transfer for large portfolios of exposure across wide-areas. The FloodShield triggers are structured with the help of Floodbase, KatRisk, and ICEYE, plus this could be a solution that utilises ILS market capacity in future.

Here are the ten most popular news articles, week ending July 14th 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.

Yesterday it was a pleasure to welcome representatives of more than 90 organisations to our Artemis ILS Asia 2024 conference in Singapore and while the engagement of attendees from the region was as strong as ever, there has been a notable and positive shift in interest to the investor-side of the equation.

While cyber insurance pricing seems to have levelled off in 2023, rating agency AM Best noted that more can be done to attract capital to the segment, including through the provision of greater clarity on cyber risks that are considered systemic.

The Ambassador US mutual catastrophe bond fund strategy operated by advisor Embassy Asset Management has continued to expand in the busy cat bond market, driving its net assets to a new high of $263 million by July.

A new $5 million private catastrophe bond issued by German reinsurance company Hannover Re’s Bermuda-domiciled vehicle Kaith Re Ltd. has come to light, with the LI Re (Series 2024-1) deal assumed to be providing privately placed collateralized and securitized catastrophe reinsurance capacity for an unknown sponsor.

Singapore sees continued interest from sponsors, investors and specialist insurance-linked securities (ILS) managers, with a few of the latter considering establishing offices there, Cheng Khai Lim, Executive Director, Financial Markets Development Department, Monetary Authority of Singapore (MAS) said in a welcome speech at our ILS Asia 2024 conference yesterday.

We understand that the price guidance for French mutual insurance and reinsurance company Groupama’s new €150 million windstorm reinsurance focused Quercus Re DAC 2024-1 catastrophe bond has been narrowed towards the lower end.