Cat bond news

Having already sponsored two privately placed catastrophe bond issuances in 2023, Adrian Cox, the CEO of Beazley, the London headquartered specialty insurance and reinsurance underwriter, said he anticipates the company tapping the capital markets for more cyber reinsurance capacity in 2024.

The growth of the 144a catastrophe bond market is expected to accelerate, as greater acceptance of the product filters through the primary insurer base and the cat bond has demonstrated its usefulness as a complement to reinsurance, David Priebe of Guy Carpenter explained today.

The returns of insurance-linked securities (ILS) funds as a group continue on a record-setting pace through 2023, as the Eurekahedge ILS Advisers Index delivered 0.82% for July, taking the year-to-date to 7.83%.

Investor inflows to the catastrophe bond market have helped to drive non-life alternative reinsurance capital to a new record high of $99 billion, according to the latest data from Gallagher Re.

The total-return of the catastrophe bond market is now above 14% for the first eight months of 2023, meaning that the cat bond market’s investment performance remains on-track to set new all-time records this year.

As a form of protection, collateralized reinsurance looks like it could be set for a return to favour, as more primary carrier reinsurance buyers cited it as a preferred alternative capital structure, data from a survey by Moody’s Investors Service suggests.

Another estimate for the eventual insurance and perhaps reinsurance market loss from hurricane Idalia has been released, with Moody’s RMS opting for a $3 billion to $5 billion range.

Verisk has estimated that insurance industry losses from recent hurricane Idalia will total between $2.5 billion and $4 billion.

Insurance-linked securities (ILS) investor appetite is being fuelled by the higher returns available, which has driven significant new inflows to catastrophe bonds and sees the market well on-track to reach record issuance levels in 2023, according to Aon Securities.

Here are the ten most popular news articles, week ending September 3rd 2023, 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.