Catastrophe bond news

By March 1st 2024, catastrophe bond funds in the UCITS format had already delivered a 2.68% average return in 2024, as the cat bond asset class continues to benefit from strong demand that has been driving prices higher.

Yet another first time catastrophe bond sponsor has come to market with its debut issuance, as Florida Peninsula Insurance Company seeks $100 million or more in named storm reinsurance from this Palm Re Ltd. (Series 2024-1) cat bond deal, Artemis can report.

The North Carolina Insurance Underwriting Association (NCIUA) has successfully upsized its latest catastrophe bond transaction by 80%, securing the top-end target for $450 million of named storm reinsurance from the Cape Lookout Re Ltd. (Series 2024-1) issuance, this publication understands.

The SageSure linked SureChoice and Elevate reciprocal exchanges have now secured the upsized target of $250 million of capital markets backed named storm reinsurance from their latest catastrophe bond, while the Gateway Re Ltd. (Series 2024-1) issuance has also priced at the low-ends of already reduced guidance.

This is the debut catastrophe bond for American European Insurance Company, with the company seeking $100 million in named storm reinsurance protection through this Charles River Re Ltd. (Series 2024-1) issuance for a coastal property book that is originated via MGA ShoreOne.

Tokio Marine & Nichido Fire Insurance Co. Ltd., the giant Japanese primary insurance group, is the latest sponsor to target below guidance pricing for its new catastrophe bond, with the still $100 million Kizuna Re III Pte. Ltd. (Series 2024-1) transaction seeing its spread guidance reduced.

The Government of Mexico has returned to the catastrophe bond market, seeking $360 million or more in disaster insurance protection for earthquake and hurricane events, through a World Bank facilitated IBRD CAR Mexico 2024 parametric catastrophe bond, Artemis has learned.

Catastrophe bond funds in the UCITS format have continued to experience growth as a group in early 2024, ending February with $11.24 billion in combined assets under management (AUM), while two UCITS cat bond funds have surpassed the $3 billion milestone this year.

PGGM, the Dutch pension investment manager that allocates the largest amount to the insurance-linked securities (ILS) market on behalf of end-client the Dutch pension PFZW, ended 2023 with just over US $9 billion in ILS assets under management, as a slight uplift in capital deployed in euro terms and currency rates lifted AUM to a […]

Having recently settled its latest and seventh catastrophe bond issuance, securing more flood reinsurance protection for the National Flood Insurance Program (NFIP), David Maurstad of the U.S. Federal Emergency Management Agency (FEMA), said the cat bond coverage was secured at “favorable terms”.