Catastrophe bond news

The utilisation of parametric structured insurance-linked securities (ILS) solutions to protect corporations against the impacts of natural disasters has the potential to grow, providing effective coverage where conventional insurance and reinsurance markets have perhaps failed to do so, according to Dr. Alan Punter.

Capital market investors were “well placed” to support the recent Horse Capital I DAC motor third-party liability loss ratio ILS, catastrophe bond like transaction, and its successful completion could open the ILS market to new opportunities, according to Bill Dubinsky of WCMA.

German reinsurance firm Hannover Re has facilitated another private catastrophe bond (or cat bond lite) transaction, a $10 million LI Re (Series 2016-2), with the notes issued through its segregated accounts vehicle, Kaith Re Ltd. listing on the Bermuda Stock Exchange (BSX).

The Texas Windstorm Insurance Association (TWIA) could potentially save as much as $28 million by shifting its traditional reinsurance cover to the capital markets, although there is yet to be any formal analysis as to the impact of such a transition.

XL Catlin’s trip to the capital markets with twin Galilei Re Ltd. (Series 2016-1) and Galilei Re Ltd. (Series 2017-1) catastrophe bond issues will result in the largest single cat bond of 2016 and a brisk start to 2017 for the ILS market, as the company targets an upsized $1.275 billion of capacity from them.

The U.S. Federal Emergency Management Agency (FEMA) has begun its procurement process for a 2017 flood reinsurance program for its National Flood Insurance Program, as it seeks to push more of the risk into private risk transfer markets.

Failure from the London marketplace to create a competitive insurance-linked securities (ILS) regime will be a “massively missed opportunity” that will most likely see another jurisdiction fill the void, according to Des Potter, Head of GC Securities, EMEA.

Investment banking group J.P. Morgan has sold off its entire portfolio of catastrophe bonds and other insurance-linked securities (ILS), citing its opinion of “value in the space” as the reason. Artemis understands portfolio manager Kyle Freeman is moving on from the company at the end of this year.

Here are the ten most popular news articles, week ending 18th December 2016, 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.

Assicurazioni Generali will secure an upsized €255 million (approx US$266m) of fully collateralised reinsurance cover for motor third-party liability loss ratio deterioration, after its innovative Horse Capital I DAC ILS or catastrophe bond like transaction grew by 42% at pricing.