Cat bond news

The Standards Board for Alternative Investments (SBAI), working in consultation with participating ILS managers, investors and interested parties, has again updated its Insurance Open Protocol reporting template for insurance-linked securities (ILS) and reinsurance linked investment funds.

Cyber catastrophe bonds have come into focus after a global IT outage caused by a CrowdStrike service update resulted in millions of computers running critical services going offline, raising questions surrounding cyber loss accumulation and aggregation risks, and highlighting some uncertainties over exactly what cyber cat bonds cover.

Here are the ten most popular news articles, week ending July 21st 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.

Artemis has learned from sources that the more junior €53 million Hexagon III Re Pte. Ltd. (Series 2021-1) Class B tranche of notes from Covéa Group’s 2021 catastrophe bond issuance could potentially be facing a hit to principal, as the insurers losses from November 2023’s European windstorm Ciarán rise.

Brazil’s regulations for “Letra de Risco de Seguro”, or LRS which translates to Letter of Insurance Risk and are effectively insurance-linked securities (ILS) laws, are seen as a positive step for the local re/insurance market and already some activity is expected to be seen, according to Fitch Ratings.

US primary insurer Travelers has purchased a larger reinsurance program at the mid-year renewal season, adding more cover from its northeast catastrophe reinsurance protection. But its reinsurance retentions have increased, and Travelers has also lifted its catastrophe bond attachment higher up the tower.

Swiss Re has appointed employee Chris Minter as the new Head of its Alternative Capital Partners (ACP) division, as incumbent to the position Philipp Rüede is departing the global reinsurance company.

Senior leadership executives from Marsh McLennan and its reinsurance broking unit Guy Carpenter explained today that the catastrophe bond and insurance-linked securities (ILS) market has helped in meeting rising client demand for property catastrophe coverage.

US primary insurer Allstate has reported what some analysts are calling lower than expected catastrophe losses for June 2024, with just $230 million announced pre-tax for the month. But the second-quarter 2024 total has now risen to $2.1 billion, which is a relatively heavy start for the annual aggregate year of its catastrophe bonds.

Switzerland based pension fund Nest Sammelstiftung, or the Nest Collective Foundation, has highlighted the diversifying benefit of its insurance-linked securities (ILS) allocation, pointing to ILS market returns as a bright spot from 2023.