Catastrophe bond news

A new paper authored by Sayuri Shirai, ADBI Fellow at the Asian Development Bank Institute (ADBI), explores how banks can utilise catastrophe bonds and puts forward an interesting suggestion, that as sponsors or co-sponsors, banks could bundle the climate exposure from their other assets into cat bonds to hedge against growing climate risks.

Covéa Group, the French mutual insurer, continues to target €200 million in fully-collateralized reinsurance protection with its new Hexagon IV Re Ltd. (Series 2025-1) catastrophe bond issuance, but the price guidance for each of the two tranches of notes on offer has now been lowered, Artemis understands.

A new catastrophe bond is being offered to investors that has a subsidiary of investment firm One William Street Capital Management, L.P. as its ceding company or sponsor, with the Meadows Ltd. (Series 2025-1) designed to provide $125 million or more in US named storm protection, Artemis has learned.

The increasing diversity of risk transfer instruments and reinsurance capital sources, including insurance-linked securities (ILS), is a credit positive for the U.S. property and casualty (P&C) insurance sector that faces an evolving risk landscape and rising secondary peril losses, according to rating agency KBRA.

This week’s Amazon Web Services (AWS) outage may have cost billions in lost opportunity and downtime for technology and internet services around the world and could trigger some cyber insurance policies, but it was not significant enough to be considered a Catastrophic Event, Parametrix has told us.

The Australian Prudential Regulation Authority is moving forward with its process to ease access to alternative reinsurance solutions in the country, including insurance-linked securities (ILS), with one updated proposal now being to remove the requirement for a reinstatement completely for instruments like catastrophe bonds.

A new private catastrophe bond has been issued by German reinsurance company Hannover Re’s Bermuda-based structure Kaith Re Ltd., with $15 million of LI Re (Series 2025-2) notes issued to support what is assumed to be a privately placed collateralized and securitized catastrophe reinsurance arrangement for an unknown sponsor.

Welcome to Artemis’ 2025 Monte Carlo Rendezvous Executive Roundtable, during which nine leaders and experts from across the insurance-linked securities (ILS) and reinsurance sector discussed the current state and future prospects of the market.

In property catastrophe reinsurance “the bloom is off the rose” according to Rob Berkley, President and CEO of W. R. Berkley Corporation, who during an earnings call yesterday cautioned that while margin does remain in property cat, the potential for a “feeding frenzy” at the 1/1 2026 renewals may change that.

Man Group, a global independent alternative and active investment management firm, has now launched its awaited UCITS catastrophe bond fund managed under the Man AHL brand, with the Man Systematic Cat Bonds fund having become operational earlier this month, Artemis can report.