Catastrophe bond news

The target size for the Gateway Re Ltd. (Series 2024-1) catastrophe bond issuance that will benefit the SageSure linked SureChoice and Elevate reciprocal exchanges has now been increased, with up to $250 million of capital markets backed reinsurance now targeted from the deal.

Aki Hussain, Chief Executive Officer (CEO) of insurer Hiscox, expects continued outflows from the firm’s insurance-linked securities (ILS) business in 2024, but with new money starting to come in and with Hiscox set to supplement the business with its own capital, the expectation is for net portfolio growth this year.

Having seen its investments into insurance-linked securities (ILS) shrink in value since 2017 saw the market impacted by a string of more significant catastrophe loss years, the pension fund of global beverage and food giant the Coca Cola Company has experienced a more positive year in 2023, with the value of its ILS investments increasing.

Hiscox Group had a particularly busy end to the year in the insurance-linked securities (ILS) space, with a new collateralised reinsurance sidecar and its first catastrophe bond fund launched, while its Hiscox ILS fund management unit also raised an additional $140 million of new capital for the January renewals and doubled its fee income.

The average return of insurance-linked securities (ILS) funds tracked by the Eurekahedge ILS Advisers Index reached 1.16% for January 2024, which was a “particularly high” performance for what is often a slower month lacking in peak peril seasonality.

It’s that time of year when we anticipate a range of seasonal hurricane forecasts to be published over the coming weeks, but long-range forecasts are already calling for the 2024 Atlantic hurricane season to be extremely active, with one forecaster calling for a “hurricane season from hell” in 2024.

Here are the ten most popular news articles, week ending March 3rd 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.

By the end of February, the dedicated mutual catastrophe bond fund strategy offered by investment manager Amundi US, the Pioneer Cat Bond Fund, had grown its assets under management to reach $218 million, while delivering its investors an almost 15.9% one-year return.

American Integrity Insurance Company will now secure its upsized target of $305 million in collateralized named storm reinsurance protection from its new Integrity Re Ltd. (Series 2024-1) catastrophe bond, while two tranches of notes from the issuance are set to price below guidance.

PURE, a high-net worth insurance specialist that is part of the Tokio Marine Group, has entered the catastrophe bond market for the first time, seeking $100 million or more in named storm and earthquake reinsurance from an Ashera Re Ltd. (Series 2024-1) issuance, Artemis has learned.