Catastrophe bond news

In the month of September 2024, the overall yield of the catastrophe bond market declined further as the effects of hurricane seasonality accelerated, while also adding to the decline is a gradual reduction in the cat bond market collateral yield, as lower interest rates begin to have an effect.

While it has been growing its cyber underwriting business, specialist insurer Beazley has also implemented a robust hedging strategy to control the tail, recently securing a $290 million cyber industry loss warranty (ILW) cover and securing its third PoleStar Re cyber catastrophe bond.

For the month of August 2024, the broad benchmark index for insurance-linked securities (ILS) funds, the Eurekahedge ILS Advisers Index, has recorded its highest monthly return since its inception in 2006, being up by 1.71% for the month.

The catastrophe bond and insurance-linked securities (ILS) market has a “meaningful growth opportunity” ahead of it, with a near doubling of the ILS market to as much as $200 billion in capital possible by the year 2032, according to analysts at investment bank Jefferies.

Catastrophe bond and related insurance-linked securities (ILS) market activity was more muted in the third-quarter of 2024, but the $573 million of new risk capital issued still helped the market reach $13.2 billion after the first nine-months of the year, Artemis’ brand new quarterly cat bond market report details.

Prologis, Inc., the logistics, warehousing and supply-chain focused real estate owner and investor, is back in the catastrophe bond market for the second time, looking to sponsor a $95 million Logistics Re Ltd. (Series 2024-1) US earthquake focused issuance, as a renewal of its first cat bond.

Here are the ten most popular news articles, week ending September 29th 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.

Hurricane Helene made landfall last night away from more densely populated areas of Florida, in the Big Bend region, but despite extensive damage and significant storm surge, initial industry estimates suggest losses to per-occurrence catastrophe bonds seem unlikely at this time, according to Zurich-headquartered insurance-linked securities (ILS), catastrophe bond and reinsurance investment manager, Twelve Capital.

Hurricane Helene continued to intensify right up to landfall on the Big Bend coastal region of Florida, hitting the coast with sustained wind speeds of 140 mph and higher gusts, while storm surge flooding has now reached the highest levels in more than 80 years in the Tampa Bay area.

The momentum seen in the catastrophe bond market over the last year is expected to persist, with further growth in the amount of cat bonds outstanding expected by year-end 2024, Shiv Kumar, President of GC Securities told us in an interview.