Cat bond news

French insurance and reinsurance carrier AXA is not renewing its property catastrophe bond for 2018, as the firm currently finds traditional reinsurance pricing more attractive and sees the costs of sponsoring cat bonds, both financially and in terms of effort, as high.

As insurance and reinsurance specialist XL Group increased its use of alternative capital to $3 billion around the renewals, it did so by leveraging its ILS fund manager New Ocean Capital Management, as well as through the addition of a new property quota share deal with third-party capital partners.

In an interview with A.M. BestTV at Artemis’ second ILS conference in New York City, PCS Assistant Vice President (AVP), Tom Johansmeyer, discussed the potential for the insurance-linked securities (ILS) market to expand further into the cyber space, after proving its worth in 2017.

The World Bank sees the ability of its Treasury to mobilise fixed income capital to fund sustainability as a key piece of its mandate, with disaster risk transfer, in the form of catastrophe bonds, insurance and weather risk trades, seen as important tools to protect against the erosion of specific countries development gains.

Lottery company MyLotto24 has leveraged the capital markets as a source of jackpot insurance and reinsurance again, with a new Hoplon III Insurance Ltd. transaction that again leverages both catastrophe bond and collateralized reinsurance technology in a structure that is more flexible for the company.

Insurance and reinsurance linked investment specialists Solidum Partners has created, issued and settled a second private catastrophe bond on the blockchain, with a roughly $15 million multi-tranche transaction which we’ve added to our Deal Directory as Jungfrau IC Limited 2018.

The evolution of global reinsurance continues with the capital markets and insurance-linked securities (ILS) playing an increasingly important role as large, resulting in a clear need for players to form larger, globally diversified re/insurers and leverage alternative capital, according to A.M. Best.

Here are the ten most popular news articles, week ending 11th February 2018, 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.

The insurance-linked securities (ILS) investor base remained calm and orderly during the extremely active 2017 Atlantic hurricane season, and in fact, as hurricane Irma moved up the coast, Swiss Re’s Judith Klugman was surprised at just how willing investors were to provide additional capital.

Giant Japanese reinsurance buyer Zenkyoren is returning to the catastrophe bond market for another opportunity to tap the capital markets for a source of collateralized earthquake reinsurance protection, with a currently $250 million Nakama Re Ltd. (Series 2018-1) transaction, sources said.