Cat bond news

Some investors may not have realised that “reinsurance has a self-healing mechanism” causing them to miss out on the record year of returns in 2023, according to Larry Swedroe, Head of Financial and Economic Research at Buckingham Wealth Partners.

Arch Capital Group, the Bermuda headquartered specialty insurance and reinsurance company, has now secured the targeted $100 million of industry loss triggered protection from its new Ramble Re Ltd. (Series 2024-1) catastrophe bond, with the notes now priced at around 12% below the mid-point of initial guidance.

In 2023, the catastrophe bond market became increasingly attractive for sponsors, with the gap between traditional reinsurance and capital market rates narrowing for some perils, according to reinsurance firm Swiss Re’s Capital Markets division.

Third-party investor capital under management in reinsurance joint-ventures and insurance-linked securities (ILS) funds managed by RenaissanceRe’s Capital Partners division reached almost $7 billion at the start of 2024, with the firm’s catastrophe bond fund strategy driving the largest share of the last year’s growth.

The North Carolina Insurance Underwriting Association (NCIUA) has returned to sponsor another catastrophe bond to source more named storm reinsurance protection, seeking $250 million or more in aggregate cover from a Cape Lookout Re Ltd. (Series 2024-1) transaction.

Here are the ten most popular news articles, week ending February 25th 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.

Equity analysts at investment bank Morgan Stanley have said that they believe it is too early in 2024 to assume that inflows of capital to catastrophe bonds and more broadly insurance-linked securities (ILS), will have a major impact on reinsurance pricing.

Insurance-linked securities (ILS) and alternative reinsurance capital structures may continue to be the primary source of new reinsurance capacity through 2024, according to analysts at Bloomberg Intelligence.

With the recent successful completion of its fifth catastrophe bond in the Herbie Re series of deals, Fidelis Insurance Group finds the cat bonds offer a “critical component” of its capital management and protection arrangements, Ian Houston, Chief Underwriting Officer has said.

Tokio Marine & Nichido Fire Insurance Co. Ltd., the giant Japanese primary insurance group, has returned to the catastrophe bond market seeking issuance of a $100 million Kizuna Re III Pte. Ltd. (Series 2024-1) transaction, that is being issued out of Singapore to provide the company with collateralized earthquake reinsurance protection.