Cat bond news

Inigo, the London headquartered specialty insurance and reinsurance underwriter with a Lloyd’s syndicate, has lifted the target size for its second catastrophe bond issuance slightly, with the Montoya Re Ltd. (Series 2022-2) deal now pitched at up to $110 million in size, but with the coupon having moved to the top-end of initial guidance.

The Florida property insurance market could face an even more challenging year ahead in 2023, as reinsurance capital loses its appetite for the state and private insurance capital shows now interest in moving in currently.

Catastrophe bond funds, as measured by the Plenum CAT Bond UCITS Fund Indices, lost ground for the first week since mid-October as the effects of continuing spread widening and the resulting price adjustments dented performance a little.

It is a compelling time for investors to build on their insurance-linked securities (ILS) allocations Schroders Capital believes, with the asset manager forecasting persistent cat bond spread widening into 2023.

Here are the ten most popular news articles, week ending December 4th 2022, 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.

US primary insurance carrier Allstate has now settled for $100 million of catastrophe reinsurance protection from its latest cat bond, as the Sanders Re III Ltd. (Series 2022-3) issuance has failed to upsize, while the notes were priced at the elevated price level, roughly 14% above the mid-point of guidance.

Insurance-linked securities (ILS) and catastrophe bond funds gained 0.97% in the month of October 2022, as some ILS funds rebounded somewhat after hurricane Ian, as losses from the storm appeared lower than expected for some cedents.

American Family Mutual Insurance Company, or AmFam as it is abbreviated, has returned to the catastrophe bond market for the third year running, looking to add another $100 million or more to its capital market backed catastrophe reinsurance, through a new Four Lakes Re Ltd. (Series 2022-1) multi-peril cat bond issuance.

Higher-risk focused insurance-linked securities (ILS) fund strategies appear to be averaging losses around the 17% mark after hurricane Ian, according to a report from Frontier Advisors.

Rating agency AM Best has maintained a Stable outlook for the global reinsurance sector, while warning that investor appetite to provide new capital, on either the traditional or insurance-linked securities (ILS) sides of the market, remains limited.