Cat bond news

The parametric U.S. west coast and California parametric earthquake catastrophe bond, Acorn Re Ltd. (Series 2015-1), has been upsized by 50% to a $300m issuance, while at the same time the price has been moved to the midpoint of guidance.

There appears to be a gradual shift towards privately placed catastrophe bond transactions, or cat bond lites, as smaller, more efficient structures increasingly come to the ILS market, rather than full-blown 144A affairs, according to Property Claim Services (PCS) new report.

The first catastrophe bond covering risks in China, Panda Re Ltd. (Series 2015-1), has now completed successfully, raising $50m for the sponsor state-owned reinsurance firm China Re, which was the lower end of the sponsors target size for the deal.

This morning we published our latest quarterly report looking at issuance in the catastrophe bond and insurance-linked securities (ILS) market. The report titled ‘Q2 2015 Catastrophe Bond & ILS Market Report – Keeping up with demand‘ shows that while not setting records, Q2 issuance kept up with investor demand at $3.162 billion.

The London insurance and reinsurance market has to fight its corner if it is to remain the leading center for risk and that includes fighting to attract ILS business to its shores, according to the UK’s Crown Representative for Insurance Michael Wade.

Insurance-linked securities (ILS) and reinsurance linked assets under management at New York based Stone Ridge Asset Management, the beta and alternative risk focused mutual fund manager, have neared $3.3 billion, up 9.4% in three months.

Another milestone has been reached for the catastrophe bond and insurance-linked securities (ILS) market, with the introduction of the first cat bond covering Chinese perils. The Panda Re Ltd. (Series 2015-1) deal covers Chinese quake risks on an indemnity basis.

The scheduled second estimate for insurance industry losses from European windstorms Mike & Niklas has released this morning at €895m by PERILS AG, an increase of 5% since the first loss estimate from back in May.

Here are the ten most popular news articles, week ending 28th June 2015, 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 $250m Everglades Re Ltd. (Series 2013-1) catastrophe bond, sponsored by Florida’s Citizens Property Insurance Corporation in March 2014, has had its rating upgraded as it has now passed its final reset and there are no more chances to adjust the risk-level.