Cat bond news

Having recently spent time meeting with the insurance-linked securities (ILS) market at the SIFMA annual conference in March and caught up with other market participants since, we come away with a feeling that the ILS market remains keenly focused on holding onto gains made in recent years, with no ambition to revert back to the […]

In an outlook on the private markets investment sector for the second-quarter of 2024, Schroders Capital Chief Investment Officer (CIO) Nils Rode explains that insurance-linked securities (ILS) are an area of value in the current environment.

The issuance of IBRD CAR Mexico 2024, the Government of Mexico’s $420 million Mexico earthquake and Atlantic coast named storm catastrophe bond, “is a fundamental part of the federal strategy for Financial Management of Disaster Risks”, according to Héctor Santana Suárez, Head of Insurance, Pensions and Social Security in the Ministry of Finance of México.

Zenkyoren, the Japanese National Mutual Insurance Federation of Agricultural Cooperatives, has now secured its targeted $150 million of reinsurance from the new Nakama Re Pte. Ltd. (Series 2024-1) catastrophe bond, with the notes spread now priced within the initial guidance.

The catastrophe bond market is expected to generate investors as much as $17.61 billion in cash through 2024, from a combination of coupon payments and maturities, Aon Securities has estimated, which alongside inflows should be ample to help in absorbing what could be another record year of issuance.

Louisiana Citizens Property Insurance Corporation, the non-profit insurer of last resort for residential and commercial property policies in the state, has raised its upper target for its new catastrophe bond to as much as $275 million of collateralized named storm reinsurance from the Bayou Re Ltd. (Series 2024-1) issuance.

SageSure, the specialist independent managing general underwriter of property catastrophe exposed insurance, is “grateful for the continued support” it receives from the capital markets as it announces the closing of its second catastrophe bond transaction of the year, the $130 million Gateway Re Ltd. (Series 2024-2).

After its government expressed its desire to attract more insurance-linked securities (ILS) sponsors to the Hong Kong Special Administrative Region, highlighting a commitment to develop its ILS market, executives from the Insurance Authority have made filling protection gaps a key focus of its ILS ambition.

Swiss Re Capital Markets (SRCM) observed an increase in the number of secondary market trades in Q4 of 2023, indicating an “encouraging sign” that the market has fully-recovered from the capacity constraints and loss uncertainty it had faced following Hurricane Ian.

Banque Bonhôte & Cie, a Swiss private bank, investment firm and wealth manager, has announced the launch of a new environmental, social and governance (ESG) focused fund strategy that will incorporate catastrophe bonds as one of its allocations.