Catastrophe bond news

The insurance-linked securities (ILS) market has continued its advance on global reinsurance markets, with no sign that there has been any impact to investor appetite following the major catastrophe losses of 2017, according to broker Willis Re.

Analysis from global reinsurance broker Aon Benfield shows that alternative reinsurance capital growth again outpaced traditional market expansion in 2017, underlining its growing influence in the market.

U.S. primary military mutual insurer USAA is back to sponsor its 31st catastrophe bond issuance with a $175 million Residential Reinsurance 2018 Ltd. (Series 2018-1) transaction, that seeks aggregate reinsurance protection against losses from multiple catastrophe and weather perils.

The new Integrity Re Ltd. (Series 2018-1) catastrophe bond transaction, which is being sponsored by Florida headquartered primary insurer American Integrity Insurance Company of Florida, Inc., has shrunk slightly while marketing, we understand, as the riskier tranche of notes was reduced in size.

Here are the ten most popular news articles, week ending 15th April 2018, 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.

Some reinsurance firms that entered the year with lower overall levels of capital, following the impacts of the major hurricanes and other losses last year, have become ” increasingly dependent on retrocession and alternative capital to maintain gross capacity,” according to rating agency Moody’s.

Florida focused property and casualty insurer Heritage Insurance Holdings, Inc. has elected to extend the maturity for two tranches of its Citrus Re Ltd. (Series 2015-1) catastrophe bond, as the company waits for loss to continue developing following last year’s hurricanes.

Speaking at the recent SIFMA IRLS 2018 conference in Miami, insurance-linked securities (ILS) market participants and experts highlighted the benefit of increasing the speed of information flow to the market, something which could help the secondary market operate more efficiently when disaster strikes.

Exposures, as measured by insured property values included in the PERILS AG Industry Exposure Database, rose across European windstorm risks and the other territories the service provider covers in the latest version of its database.

United Insurance Holdings (UPC Insurance) is now set to achieve very efficient price execution with its latest catastrophe bond issuance, the $100 million sized Armor Re II Ltd. (Series 2018-1) which has now priced at the bottom end of already slashed guidance.