Catastrophe bond news

Non-life insurance and reinsurance group Amlin plc’s latest visit to the ILS market with the Tramline Re II Ltd. (Series 2014-1) catastrophe bond has resulted in pricing set at an extremely low level, below initial guidance and with a multiple below two.

According to market sources, Tradewynd Re Ltd. (Series 2014-1), the latest catastrophe bond issuance to be sponsored by global insurance firm American International Group (AIG), has increased in size by 67% to now offer $500m of notes to investors.

Super typhoon Hagupit, or typhoon Ruby as the storm is known in the Philippines, is bearing down on the Philippines with wind gusts estimated as high as over 200mph and a path that looks ever more likely to take it directly over the country.

A new piece of insurance industry research, announced today by Verisk Climate a division of Verisk Analytics, seeks to explain the changing frequency of severe thunderstorm weather events in the U.S.

The growing participation of the capital markets and ILS investors in the transfer of natural disaster risks is positive for the California Earthquake Authority and its customers according to its CEO Glenn Pomeroy, as evidenced by its latest cat bond Ursa Re Ltd. (Series 2014-1).

Global law firm Clifford Chance has added a newly hired team to its structured finance practice, bringing with it a wealth of securitization experience including specific expertise in catastrophe bonds and insurance-linked securities (ILS).

Florida’s Citizens Property Insurance Corporation has continued to downsize, by shifting policies back to the private insurance market, while further reducing its exposure with its greatly enhance reinsurance and catastrophe bond program.

One of this year’s first time catastrophe bond sponsors, Florida-headquartered primary American Strategic Insurance, has reported that slowly mounting catastrophe losses are now rising towards the attachment point of its Gator Re Ltd. cat bond.

The Tramline Re II Ltd. (Series 2014-1) catastrophe bond, sponsored by non-life insurance and reinsurance group Amlin plc, has upsized while marketing to $200m, while at the same time the price guidance has dropped, both likely a reflection of investor demand.

The “1-in-100” initiative which looks to integrate climate and natural disaster risk into the financial system, through a process of stress-testing and disclosure, continues to gain pace as it gathered support and endorsement from the United Nations recently.