Catastrophe bond news

Here are the ten most popular news articles, week ending 8th February 2015, 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.

Swisscanto, a leading Swiss investment manager established by the Cantonal Banks to pool their fund and asset management businesses, is increasing its allocations to insurance-linked securities (ILS) as an alternative to government bonds.

French reinsurance company SCOR’s $150m U.S. wind, U.S. and Canada earthquake catastrophe bond Atlas IX Capital Limited (Series 2015-1) is seen as a tool used to optimise the reinsurers retrocession and diversify its risk capital sources, the firm said yesterday.

Michael Millette, a key figure in the development of the catastrophe bond market since the mid-1990’s, is set to retire from his position as a partner at investment bank Goldman Sachs after 21 years at the firm, according to reports.

French reinsurer SCOR’s latest $150m U.S. wind, U.S. and Canada earthquake catastrophe bond Atlas IX Capital Limited (Series 2015-1) has now been priced, and it settled right at the lowest end of the initial guidance, reflecting continued investor appetite for ILS risks.

Insurance and reinsurance group Catlin has completed its latest catastrophe bond transaction, Galileo Re Ltd. (Series 2015-1), upsizing the transaction by 50% to close it securing $300m of protection for a variety of natural perils.

Capital market investors continued attraction to relatively uncorrelated property catastrophe risk resulted in further inflows of third-party capital into ILS in 2014. This stimulated further innovation which is expected to continue in 2014, helping cat bond coverage to expand.

The African Risk Capacity (ARC), currently a catastrophe insurance pooling facility for Africa, is targeting a 2017 launch date for the first sovereign insurance cover for disease outbreaks and epidemics, which is being developed in response to the Ebola crisis.

A new private catastrophe bond transaction, Dodeka I – 2015, has been listed on the Bermuda stock exchange alongside a new program, the Kane SAC Limited ILS – Note Program, in the latest private ILS deal issued for Swiss ILS investment manager Twelve Capital.

Global reinsurance firm Swiss Re is continuing its habit of redeeming mortality catastrophe bond notes the reinsurer had issued through its Vita Capital IV Ltd. vehicle, with two more tranches redeemed recently.