Cat bond news

While investor appetite for insurance-linked securities (ILS) has been tested by consecutive years of elevated catastrophe losses, the asset class still plays an important role for many allocators and there remains an appetite to invest in new classes of risk, while differentiation is also an important consideration.

George Jones, Managing Partner, Ocorian Law (Bermuda) Limited, believes that for a special purpose insurer (SPI) to achieve its goals while remaining compliant with its obligations, the appointment of appropriate directors to its board is vital.

Pool Re, the UK government backed mutual terrorism reinsurer, saw significant interest and appetite from the capital markets for the issuance of its £100 million (USD 131m) Baltic PCC Limited (Series 2022-1) terror catastrophe bond, leading to an increase in the number of investors compared to its 2019 placement.

A new catastrophe bond issuance has been launched to benefit two Japanese insurance carriers owned by MS&AD Insurance Group Holdings, with the Tomoni Re Pte Ltd. (Series 2022-1 & 2022-2) transaction aiming to secure the sponsors a multi-year source of collateralized Japanese typhoon and flood reinsurance protection.

Private insurance-linked securities (ILS) fund strategies outperformed in January 2022, as pure catastrophe bond funds absorbed the impact of a loss after the triggering of the Philippines World Bank issued catastrophe bond.

2021 saw the catastrophe bond market soften, with a trend towards tightening across most of the year, but differentiation remained, driven by investor appetites, but according to Swiss Re Capital Markets the relative value of the insurance-linked securities (ILS) asset class persists.

According to recent data from the Bermuda Monetary Authority (BMA), use of insurance-linked securities (ILS) such as catastrophe bonds shrank among Bermuda-based insurance and reinsurance firms between 2019 and 2020, but other often collateralized structures such as ILW’s and quota shares increased in prevalence.

As conversations around cybersecurity and risk management increasingly occur at the board level, insurance-linked securities (ILS) investors and reinsurers should be excited, but must tread quickly and wisely, according to Thomas Nuth, Vice President of Marketing at DeNexus.

Here are the ten most popular news articles, week ending March 6th 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.

Inigo Insurance, the London headquartered and Lloyd’s market focused specialty insurance and reinsurance underwriter, has entered the catastrophe bond market for the first time, seeking $105 million or more in coverage from a Montoya Re Ltd. (Series 2022-1) issuance.