Cat bond news

Global beverage and food giant the Coca Cola Company’s pension fund allocation to insurance-linked securities (ILS) shrank in 2021, dipping 9% which we expect is largely due to the impacts of natural catastrophe losses across the year.

The insurance-linked securities (ILS) market has long designed its risk transfer products and solutions using the insights gleaned from the outputs of catastrophe risk models, but in the future a “digital twin” could be a far more intuitive solution that can drive significant ILS innovation, we believe.

Credit risk charges for mainland China insurance and reinsurance company sponsors of catastrophe bonds issued through Hong Kong insurance-linked securities (ILS) structures will be lower than the capital charges applied for ceding risk to reinsurance companies.

New data provides clear support for why the insurance-linked securities (ILS) market has always been so interested in cyber risks as an avenue of market expansion, as reinsurance broker Gallagher Re predicts cyber reinsurance premiums will overtake property catastrophe reinsurance before 2040.

Catastrophe bonds covering pure European windstorm risks are not expected to face any direct losses after the last few days of severe storms that blew across the continent, but there are implications for aggregate retrocession cat bonds, according to Plenum Investments.

Global reinsurance company Hannover Re is forecasting a record year for the insurance-linked securities (ILS) market in 2022, with continued expansion of the sponsor-base outside of insurance and reinsurance markets expected.

Here are the ten most popular news articles, week ending February 20th 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.

Pool Re, the UK government-supported mutual terrorism reinsurance provider, is back in the catastrophe bond market and seeking a UK £75 million (approx. US $102m) renewal of its landmark terror catastrophe bond, with a Baltic PCC Limited (Series 2022-1) cat bond issuance.

The influence of climate change on returns in the insurance-linked securities (ILS) market is uneven and ILS investment managers have access to the tools necessary to adapt to advancing climate risks, making it important that investors take a balanced-view, according to alternative asset advisors SIGLO Capital Advisors AG.

The U.S. Federal Emergency Management Agency (FEMA) has now secured the $450 million upper-target for its new FloodSmart Re Ltd. (Series 2022-1)  catastrophe bond, with the deal set to more than replace a maturing cat bond and lift the capital markets share of the National Flood Insurance Program’s (NFIP) reinsurance tower.