Cat bond news

According to Artemis’ Deal Directory data, which tracks issuances of catastrophe bonds and related insurance-linked securities, the outstanding market has hit a record high of more than $47 billion in risk capital outstanding, having already risen by 5% since the end of last year.

The Government of Jamaica’s new World Bank facilitated catastrophe bond issuance remains at its initial $150 million in size, while the notes issued under this IBRD CAR Jamaica 2024 cat bond are now expected to be priced at the upper-end of initial guidance, Artemis has learned.

K2 Advisors, the hedge fund focused investment management unit of Franklin Templeton, believes that the forward-looking total yield potential of insurance-linked securities (ILS) remains attractive despite recent spread tightening, leading the manager to keep catastrophe bonds as its top sub-sector pick.

U.S. primary insurer Nationwide Mutual Insurance Company has raised the target for its latest catastrophe bond, with now up to $225 million in multi-peril reinsurance sought from this new Aquila Re I Ltd. (Series 2024-1)  transaction, Artemis has learned.

USAA has now lowered the target for its latest catastrophe bond to $125 million, as  a zero-coupon tranche of notes from the Residential Reinsurance 2024 Limited (Series 2024-1) issuance have been dropped, while the other two multi-year tranches look set to price towards the lower-ends of guidance.

Artemis can report that the annual aggregate catastrophe losses applicable to US primary insurer Allstate’s outstanding catastrophe bond that features a $1m franchise deductible are now just slightly below the attachment point for the notes, suggesting the maturity will likely extend to allow for any loss development.

The total-return of the outstanding catastrophe bond market for the first-quarter of 2024 has reached 4.57%, according to data from the Swiss Re Cat Bond Performance Indices, which shows that cat bond market performance is running slightly behind the prior year.

This video features an expert panel discussing collateralized reinsurance and retrocession market trends at our Artemis ILS NYC 2024 conference, which was held in New York on February 9th 2024.

There is one week left to secure a Super Early Bird ticket rate to attend our next catastrophe bond and insurance-linked securities (ILS) market conference, ILS Asia 2024, which takes place on July 11th at the Suntec Convention Centre in Singapore.

The North Carolina Joint Underwriting Association (NCJUA) has returned to the catastrophe bond market for the first time since 2013, seeking $125 million of more in aggregate named storm reinsurance from this Longleaf Pine Re Ltd. (Series 2024-1) issuance.