Cat bond news

Following the impacts of 2017 catastrophe events and the subsequent impressive response from the insurance-linked securities (ILS) industry, Kathleen Faries, Head of Tokio Millennium Re’s Bermuda branch, believes that in terms of the rate and return environment, this is the new market.

SCOR is the latest of the major reinsurance firms to report that it grew its portfolio at the January 2018 renewals, with U.S. natural catastrophe risks one area that the company deployed more capacity, as its overall premiums recorded a 3.7% increase.

The World Bank has hailed the “very strong demand” for its recently completed issuance of $1.36 billion of parametric earthquake catastrophe bonds, to the benefit of Pacific Alliance member countries Chile, Colombia, Mexico and Peru, calling the transaction “historic” and highlighting some records it has set.

Mt. Logan Re Ltd., the collateralized reinsurance, sidecar-like investment vehicle of global reinsurer Everest Re, grew by 18% over the year to January 1st 2018, reaching $1.028 billion of assets in time for the key renewals.

XL Group, the parent to the XL Catlin insurance and reinsurance brand, has considerably increased the amount of alternative capital it uses at the renewals in order to reduce its catastrophe exposures and optimise its book, by making the most of efficient capacity.

All of the alternative reinsurance capital that was lost in the 2017 major catastrophe events has now been replaced, which helped global dedicated reinsurance capital reach a new high of $427 billion at the end of 2017, according to rating agency A.M. Best.

The two stock exchange listed ILS and collateralized reinsurance investment strategies run by Blue Capital Management, a subsidiary of Sompo International Holdings Ltd., are targeting improved returns for 2018 after experiencing substantial rate increases at the renewals.

Insurance Income Strategies Ltd., a new listed insurance-linked securities (ILS) and collateralized reinsurance investment vehicle backed by 1347 Advisors and Kinsgway Financial, is targeting an initial $52 million capital raise, SEC filings show.

The impressive reaction of the insurance-linked securities (ILS) market to 2017 catastrophe events shouldn’t be a surprise and the marketplace has an opportunity to do even more in the future, according to speakers and attendees at Artemis’ second conference in New York.

The World Bank supported issuance of five tranches of earthquake catastrophe bonds, for the four member nations of the Pacific Alliance trade bloc in Latin America, is now going to settle at an overall transaction size of $1.36 billion, with all tranches of notes now priced at the bottom end of already reduced guidance.