Cat bond news

Aon Securities, the capital markets and investment banking arm of the insurance and reinsurance broker, has hired experienced insurance-linked securities (ILS) market executive Paschal Brooks.

A particularly strong performance through the month of April 2023 now sees catastrophe bond funds in the UCITS format with an average return for the first four months of the year of 5.50%, with both higher and lower-risk cat bond fund strategies faring particularly well during the period.

Louisiana Citizens Property Insurance Corporation is the latest catastrophe bond sponsor in 2023 to target an enlarged issuance size, with what was a $150 million target for its new Bayou Re Ltd. (Series 2023-1) deal, now lifted to target as much as $220 million in reinsurance from the cat bond.

The UK’s Prudential Regulation Authority (PRA) of the Bank of England is continuing to work to simplify its approach to insurance-linked securities (ILS), still hoping the reinsurance market segment will “take off” in the country.

Trading of catastrophe bond notes in the secondary market has picked up in the last few weeks as cat bond fund managers and investors look to adjust their portfolios to accommodate the brisk flow of newly issued deals, helped in part by a record over $2 billion of issuance in April 2023, by Artemis’ numbers.

Eclipse Re Ltd., a private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform owned and operated by Artex Capital Solutions, has completed the issuance of two private cat bond arrangements totalling almost $18.8 million of risk capital issued.

Here are the ten most popular news articles, week ending May 7th 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.

Speaking with Artemis in a recent video interview, Jorge Familiar, Vice President and Treasurer of the World Bank explained that client country demand for catastrophe bonds and risk management arrangements will likely rise, while he also expects that markets will be there to support these issuances.

Reinsurance carriers participating in the lowest layer of FEMA’s National Flood Insurance Program (NFIP) reinsurance tower are now at-risk of losses, as the NFIP’s claims from hurricane Ian have surpassed $3.9 billion, nearing the $4 billion trigger.

Demonstrating the attactiveness of insurance-linked securities (ILS) investments at this time, the Eurekahedge ILS Advisers Index has delivered its highest returns for a first-quarter of any year since 2007.