Catastrophe bond news

Rating agency Standard & Poor’s has now affirmed its rating on the MultiCat Mexico Ltd. (Series 2012-1) Class C catastrophe bond notes and removed them from CreditWatch as hurricane Odile was not a triggering event.

As of the 31st October 2014 the total net assets of New York based Stone Ridge Asset Management’s three insurance and reinsurance-linked investment funds had reached $2.124 billion, up by approximately 5% since the end of July.

Signs that the catastrophe bond pricing environment has become more stable are becoming increasingly apparent as the end of 2014 approaches and the pace of price declines continues to slow, according to a report by ratings agency Moody’s.

The U.S. National Association of Insurance Commissioners has received a proposal to change the capital treatment of catastrophe bonds for life insurers investing in them, which it believes could open the floodgates for a wave of new capital to enter the ILS sector.

German reinsurance firm Hannover Re has facilitated another private catastrophe bond or ILS transaction, LI Re (Series 2014-2), as the second private bond transformation and issuance under the LI Re segregated account of Kaith Re Ltd.

Florida primary insurer American Strategic Insurance’s Gator Re Ltd. catastrophe bond saw some trading activity earlier this month despite the threat of losses, but a recent thunderstorm and tornado system may produce additional qualifying losses.

The practice of successfully and accurately modeling casualty or liability catastrophe risks is something that continues to prove difficult for insurance and reinsurance firms, making them most likely a slow area of expansion for ILS and alternative capital.

German reinsurance company Hannover Re has again used its Bermuda-domiciled segregated accounts vehicle Kaith Re Ltd. to issue a CHF 70m ($71m) private insurance-linked security or catastrophe bond transaction using a segregated account named Leine Re.

Investors in the MultiCat Mexico Ltd. (Series 2012-1) Class C catastrophe bond notes will not face any loss due to September’s hurricane Odile as calculation made using the latest data from the NHC deems the parametric trigger had not been triggered.

Here are the ten most popular news articles, week ending 28th December 2014, 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.