Catastrophe bond news

Similar to the catastrophe excess of loss marketplace, the retrocession market softened to a degree at the January 1st, 2025, reinsurance renewals, and was generally more responsive to Bermuda-based reinsurer Conduit Re’s needs, according to Chief Executive Officer (CEO), Trevor Carvey.

U.S. primary carrier Farmers Insurance Group has announced that initial estimates point to an expected loss of $600 million for the Los Angeles wildfires, net of its per-occurrence reinsurance coverage and gross of tax, and a roughly $250 million reinstatement premium payment.

Security First Insurance Company, a specialist Florida domestic homeowners insurer, has seen the price guidance for its First Coast Re IV Ltd. (Series 2025-1) catastrophe bond issuance decline further, while the Class A tranche of notes are now targeting $100 million in size, Artemis has learned.

UBS Hedge Fund Solutions, a division of UBS Asset Management focused on managing and advising on a range of alternative assets for clients, has revealed that looking across 2025, the group continues to see reinsurance and insurance-linked securities (ILS) as one of its highest conviction themes in Credit &  Income.

Following a record year for the catastrophe bond market in 2024, with issuance increasing by over $1 billion to a new annual high of $17.7 billion, 2025 is set to be another busy year for the market, according to Brad Adderley, Partner at global law firm Appleby.

While allocating capital into the insurance-linked securities (ILS) sector is “certainly the right decision for asset allocators” at this time, manager Icosa Investments cautions that with some challenges in the sector it is not advisable for cat bond fund managers to buy everything in the asset class.

Elementum Advisors, LLC, the alternative investment manager that specialises in collateralized natural catastrophe event reinsurance investments, has announced the launch of a new higher-yield focused, multi-investor catastrophe bond fund strategy.

American Integrity Insurance Company has raised its target for reinsurance limit to be raised from its latest catastrophe bond to now $550 million, as the Integrity Re III Ltd. (Series 2025-1) deal upsized from an initial target of $325 million, but with now one higher-risk tranche dropped from the issuance.

Man Group, a global independent alternative and active investment management firm, has made an application to establish a UCITS catastrophe bond fund under its Man AHL brand, Artemis has learned from sources.

A number of catastrophe bonds have seen negative price movements due to potential exposure to the Los Angeles wildfires. As insured loss estimates from the event fluctuated, bond prices dropped by an average of 10% to 20%. But the potential for cat bond capacity to be utilised may strengthen bondholders’ demand for higher returns, says […]