Catastrophe bond news

American Family Mutual Insurance Company (AmFam) has returned to the catastrophe bond market for now the fifth year in a row, with a target this time to secure $175 million in protection from this Four Lakes Re Ltd. (Series 2024-1)  cat bond issuance, to expand its capital markets backed multi-peril catastrophe reinsurance, Artemis has learned.

Here are the ten most popular news articles, week ending November 17th 2024, 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 or get our email alerts for every article we publish.

RenaissanceRe, the Bermuda based reinsurance company and third-party capital manager, has returned to the catastrophe bond market seeking $250 million or more in multi-peril retrocessional from a Mona Lisa Re Ltd. (Series 2025-1) issuance, to cover risks in its own portfolio and that of its flagship partner capital vehicle DaVinci Re.

The UK’s Prudential Regulation Authority (PRA) has now officially launched its consultation on reforms for the insurance special purpose vehicle (ISPV) regulatory regime, which includes the accelerated pathway for certain catastrophe bond applications and a 10-day target for approvals of certain ILS arrangements.

Ariel Re has now finalised its new Titania Re Ltd. (Series 2024-1) catastrophe bond transaction, securing the 86% upsized target of $325 million in multi-peril industry-loss triggered retrocessional reinsurance, while the notes have been priced a full percentage point below the low-end of the initial guidance range.

US primary insurer Allstate is back in the catastrophe bond market and seeking $350 million or more in multi-peril catastrophe reinsurance protection from the capital markets through a Sanders Re II Ltd. (Series 2024-3) issuance, Artemis can report.

The Texas Windstorm Insurance Association (TWIA) is looking at another relatively significant increase in its reinsurance purchase next year, as it projects it may need almost $5.8 billion of reinsurance and catastrophe bond limit, due to the near-erosion of its CRTF by hurricane Beryl and a still-rising PML.

Speaking with Artemis, Brad Adderley, Partner at global law firm Appleby, emphasised that while 2024 may not be a record year for catastrophe bond issuance, it is not a sign of doom and gloom, as the market has already had a strong year despite a subdued third quarter.

Year-to-date, only modest amounts of catastrophe losses would be shared with the investors backing reinsurance firm Swiss Re’s Alternative Capital Partners (ACP) division, as the third-party capital unit is more geared to larger tail-risk events, the firm’s Group CFO John Dacey explained today.

Analysis by Neptune Flood Research Group of FEMA’s National Flood Insurance Program (NFIP) data suggests a current projection for up to $2.5 billion of losses from hurricane Milton, while the 2024 total NFIP claims burden could approach as much as $10.5 billion.