Cat bond news

More than 90 insurance, reinsurance and insurance-linked securities (ILS) companies have implemented risk modelling firm AIR Worldwide’s new Touchstone platform, since its launch in January 2013, to help them manage their catastrophe risks.

Hurricane Odile made landfall in southern Baja California Sur, near Cabo San Lucas as a major storm with winds of 125mph and more importantly for catastrophe bond investors a minimum central pressure of 930mb, according to the NOAA.

Here are the ten most popular news articles, week ending 14th September 2014, on catastrophe bonds, reinsurance capital and related risk transfer topics, from the last seven days on Artemis. To ensure you never miss a thing  subscribe to the weekly Artemis email newsletter updates.

PERILS AG, the Swiss-based provider of industry-wide European catastrophe insurance industry loss data and indices, has seen limits-at-risk using its data decline by approximately 14% to $3.7 billion, as industry loss warranty (ILW) activity slowed.

The secondary market in catastrophe bonds and insurance-linked securities (ILS) saw strong seasonal price rises in August, as the market made much larger gains than recent months, leading to more pleasing returns for ILS and cat bond fund managers.

Two of the larger law firms with practices targeting the insurance, reinsurance and insurance-linked securities (ILS) markets have signed a letter of intent to merge to create a new, larger firm that would be named Locke Lord Edwards LLP.

The California State Compensation Insurance Fund’s (SCIF) catastrophe bond renewal, Golden State Re II Ltd., has now been priced right at the low-end of initial coupon guidance, again showing investors continuing appetite for the ILS asset class.

Alternative reinsurance capital, made up of insurance-linked securities (ILS), catastrophe bonds, collateralized reinsurance, sidecars and ILW’s etc, has captured 20% of the property catastrophe reinsurance market, according to Aon Benfield.

With the maturity of Tokio Marine’s $160m Kizuna Re Ltd. catastrophe bond, which it sponsored in 2011 to secure fully collateralized reinsurance cover for typhoon risks, Japanese typhoon has shrunk to make up just 1% of the outstanding cat bond market.

The California State Compensation Insurance Fund’s (SCIF) catastrophe bond renewal, Golden State Re II Ltd., looks set to secure the fund additional protection compared to its maturing deal as the cat bond has upsized by two-thirds to $250m.