Cat bond news

The National Flood Insurance Program’s (NFIP) reinsurance tower is coming into view of the rising hurricane Ian claims burden, as NFIP claims filed have now surpassed 35,000, according to the US Federal Emergency Management Agency (FEMA).

The notes associated with the remaining $97.5 million of principal from the Philippines governments World Bank issued IBRD CAR 123-124 catastrophe bond that is exposed to tropical cyclones have now been marked down implying a total loss is expected by the market after super typhoon Noru, Artemis has learned.

Investor interest in institutional asset classes that are environmental, social and governance (ESG) appropriate is set to increase rapidly, which will help ESG assets under management around the world expand 84% by 2026, according to a new report from PwC.

There are likely to be some retrocession market wildcards in the wake of hurricane Ian at the next major set of reinsurance renewals on January 1st 2023, according to Moody’s Investors Service.

The value of insurance-linked securities (ILS) held in the dedicated mutual ILS investment fund operated by Amundi US Investment Management, the Pioneer ILS Interval Fund, almost caught up with their cost in the last quarter of record.

The second session at our Artemis London 2022 conference on September 6th featured a panel discussion titled “Filling the Gaps”, where participants discussed climate and disaster risk, as well as parametric catastrophe bonds.

AGILE Risk Partners, a specialist technology-focused direct & facultative (D&F) property risk underwriting start-up that brings diversified capital to its deals, told Artemis it has deployed an initial $50 million from a $250 million allocation to distressed areas of the market.

Before hurricane Ian devastated western Florida, the U.S. Federal Emergency Management Agency (FEMA) had already begun the process towards a January 2023 renewal of the National Flood Insurance Program’s (NFIP) traditional reinsurance tower.

Universal Insurance Holdings, the Florida headquartered primary insurance carrier, has pre-announced an expectation that it will suffer around $1 billion of gross losses after hurricane Ian, with the impact to fall well within its reinsurance tower that provides coverage to just over $3 billion.

Hurricane Ian is expected to be the largest single insurance industry loss event ever witnessed, with the final bill estimated to be above $75 billion once LAE is factored in, according to analysis from Stonybrook Capital.