Catastrophe bond news

Media reports today state that French insurance and investment giant AXA is in advanced talks to buy Bermudian insurance and reinsurance firm XL Group, a deal that could see two entities with related ILS investment fund operations coming together.

Japanese primary insurance group Tokio Marine & Nichido Fire Insurance Co. Ltd. has returned to the catastrophe bond market for its latest issuance, a $200 million Kizuna Re II Ltd. (Series 2018-1) transaction that aims to secure a source of capital markets backed Japanese earthquake reinsurance protection for the sponsor.

Following the successful completion of its latest, more flexible insurance-linked securities (ILS) transaction, myLotto24 Limited’s Managing Director, Blerina Essen, discussed with Artemis the company’s participation in the space, and how ILS has become an important part of its risk management structure.

Special purpose insurance (SPI) vehicle registrations in Bermuda rose by 41% year-on-year in 2017, as insurance-linked securities (ILS) related activity drove the number of insurance and reinsurance vehicles registered on the island to 58 for the year.

A new catastrophe bond transaction has been launched to benefit two companies of Japanese insurance group MS&AD Insurance Group Holdings, with a $225 million Akibare Re Ltd. (Series 2018-1) transaction that seeks to secure the sponsors a source of collateralized multi-peril reinsurance cover for three perils.

The maturity date for the remaining $40 million of principal of U.S. primary military mutual insurer USAA’s Residential Reinsurance 2013 Ltd. (Series 2013-2) catastrophe bond Class 1 notes has been extended by another three months, as the insurer waits for its loss estimates from Californian wildfires to be finalised.

The federal government of Mexico has cited new “innovations” that improve the coverage of its latest catastrophe, which was secured as part of the World Bank’s $1.36 billion multi-country Pacific Alliance cat bond issuance that completed recently.

Panthera Re Limited, a recently registered Bermuda special purpose insurance vehicle, has issued a $100 million tranche insurance-linked securities (ILS) notes, which likely collateralize an underlying reinsurance or retrocession agreement for a sponsor that is currently unknown.

Catastrophe bond investors are facing over $104 million of losses from Citrus Re bond issues sponsored by Florida focused property and casualty insurer Heritage Insurance Holdings, Inc., after the company made clear it intends to proceed with recoveries under three separate issuances following the impacts of hurricane Irma.

Reforms under the new Tax Cuts and Jobs Act (TCJA), adopted in the U.S. in December 2017, means that some insurance-linked securities (ILS) structures could be classified as a controlled foreign corporation (CFC) and others could be classified as a passive foreign investment company (PFIC), according to Mayer Brown’s Global Insurance Industry Year in Review, […]