Catastrophe bond news

US primary insurer Travelers has purchased a larger reinsurance program at the mid-year renewal season, adding more cover from its northeast catastrophe reinsurance protection. But its reinsurance retentions have increased, and Travelers has also lifted its catastrophe bond attachment higher up the tower.

Swiss Re has appointed employee Chris Minter as the new Head of its Alternative Capital Partners (ACP) division, as incumbent to the position Philipp Rüede is departing the global reinsurance company.

Senior leadership executives from Marsh McLennan and its reinsurance broking unit Guy Carpenter explained today that the catastrophe bond and insurance-linked securities (ILS) market has helped in meeting rising client demand for property catastrophe coverage.

US primary insurer Allstate has reported what some analysts are calling lower than expected catastrophe losses for June 2024, with just $230 million announced pre-tax for the month. But the second-quarter 2024 total has now risen to $2.1 billion, which is a relatively heavy start for the annual aggregate year of its catastrophe bonds.

Switzerland based pension fund Nest Sammelstiftung, or the Nest Collective Foundation, has highlighted the diversifying benefit of its insurance-linked securities (ILS) allocation, pointing to ILS market returns as a bright spot from 2023.

Some $60.5 million of the Seaside Re private catastrophe bond transactions facilitated by global reinsurance firm Hannover Re have now been allowed to mature, reducing the amount outstanding with their maturity dates extended to $78.25 million and those remaining have had their maturity dates pushed further out to October.

The World Bank is reportedly aiming to issue its first drought catastrophe bond over the next 12 – 18 months, which would most likely be focused on Africa, George Richardson, director of the capital markets and investment department at the World Bank Treasury, told Reuters.

Selling pressure in the secondary market for catastrophe bonds appears to have resulted in record levels of trading activity during the month of May, according to Florian Steiger, CEO of specialist cat bond investment fund manager Icosa Investments AG.

A new private catastrophe bond transaction has come to light, as Artemis has learned that Mangrove Risk Solutions Bermuda Ltd., the platform operated by Marsh McLennan and reinsurance broker Guy Carpenter, has issued a new $20 million Mangrove Risk Solutions Bermuda Ltd. (Series 2024-D) transaction.

We will be holding our next catastrophe bond and insurance-linked securities (ILS) market conference in London on Tuesday September 3rd, but the Super Early Bird rate for tickets to Artemis London 2024 will end later this week, so we urge you to register soon to secure the best price attendance.