Catastrophe bond news

Selective Insurance, the US property and casualty insurer, has entered the catastrophe bond market for the first time, seeking $200 million or more in multi-peril collateralized reinsurance from a High Point Re Ltd. (Series 2023-1) issuance.

French insurance group Crédit Agricole has entered the catastrophe bond market for the first time and with this debut Taranis Reinsurance DAC 2023  issuance the company is seeking €150 million or greater in capital market investor backed reinsurance against losses from regional perils.

Private ILS funds that allocate to collateralised reinsurance instruments other than catastrophe bonds, are now accelerating their 2023 returns over the group of pure cat bond funds in the Eurekahedge ILS Advisers Index after September’s results.

Allied World Assurance Company (AWAC), the global insurance and reinsurance company that is part of the Fairfax Financial group, has returned to the catastrophe bond market looking to renew its maturing deal, seeking a larger $250 million of protection with this 2001 CAT Re Ltd. (Series 2023-1)  transaction.

Tenax Capital, the London based hedge fund investment manager that operates a catastrophe bond strategy, has joined the insurance-linked securities (ILS) industry working-group that focuses on enhancing environmental, social and governance (ESG) transparency in the ILS market.

The Texas Windstorm Insurance Association (TWIA) expects to buy more reinsurance and risk transfer in 2024, as the not-for-profit wind and hail insurer of last resort for the state forecasts a significant increase in exposure, alongside a continued hard reinsurance market.

Hurricane Otis’ category 5 onslaught in the Acapulco region of Mexico is currently estimated to cost the local insurance and global reinsurance industry somewhere from US $1.8 billion to as much as US $6.5 billion, according to rating agency AM Best.

Bermuda headquartered re/insurer Arch Capital has now successfully closed its latest mortgage insurance-linked securities (ILS) issuance, securing the targeted roughly $186.6 million of coverage from the Bellemeade Re 2023-1 Ltd. issuance, while adding $46 million in direct reinsurance to take the total protection to just over $233 million.

Speaking at the 19th Singapore International Reinsurance Conference yesterday, Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), explained that insurance-linked securities (ILS) are a critical tool that can unlock capacity for the sizeable protection gaps that exist in Asia.

With the collateral yield of catastrophe bonds at an all-time high and the insurance spread component at a 12-year high, it’s an extremely attractive time for the market, according to specialist asset manager, Plenum Investments.