Cat bond news

Australian regulator of banks, insurers and pensions, the Australian Prudential Regulation Authority (APRA), has highlighted the viability of insurance-linked securities (ILS) and catastrophe bonds as reinsurance alternatives, saying it recognises their benefits and permits them under the calculation of insurance concentration risk charges.

At the mid-year renewals, US primary insurance giant Allstate has shrunk its Florida reinsurance tower, and shifted all of its catastrophe bond coverage to the upper-layers of it.

Speaking with us today, Bruce Lucas, the Chief Executive Officer (CEO) of full-stack homeowners property insurtech, Slide Insurance Company, explained that his firm has just been approved by the Florida regulator for what could be the largest takeout of policies from Citizens Property Insurance Corporation ever.

Analysing the insurance-linked securities (ILS) market outlook for the third-quarter of 2023, K2 Advisors, the hedge fund focused investment management unit of Franklin Templeton, believes spreads could tighten further, especially in catastrophe bonds, but it remains constructive on ILS and has now signalled an overweight view on industry-loss warranties (ILW’s).

Here are the ten most popular news articles, week ending July 30th 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.

The acceleration of activity in the catastrophe bond market in 2023, as cedent demand for covers in the upper-layers of their reinsurance towers has risen and the ILS market has responded to it, is seen as something that will positively benefit the bottom-line at RenaissanceRe.

Pure catastrophe bond funds as a group were up an impressive 7.17% for the first-half of 2023, narrowly beating the 6.91% average return of the private ILS funds that invest in collateralised reinsurance and retrocession opportunities as well, the latest data from ILS Advisers shows.

According to Conduit Re CEO Trevor Carvey, when it came to securing the reinsurers first slice of retrocession from the catastrophe bond market this year, the pricing for the firm’s debut $100 million Stabilitas Re Ltd. (Series 2023-1) was “in our sweet spot.”

Everest Group, formerly known as Everest Re, has reported record growth in its reinsurance segment, as the company leaned into the hard market conditions to secure higher returning business.

CSC, a provider of global business administration and compliance solutions, has announced the hiring of former Citi executive John Cuciti as a Senior Product and Relationship Manager for Delaware Trust Company, with a remit to help expand its escrow, project finance and reinsurance trust business.