Catastrophe bond news

UK-based weather forecaster the Met Office has turned its focus to the capital markets with a new Euro Windstorm Event Response service to provide insurers, reinsurers, insurance-linked security (ILS) players and brokers with a comprehensive view of European weather-related risk.

U.S. primary insurer USAA returns to the catastrophe bond market with a Residential Reinsurance 2014 Ltd. (Series 2014-2) deal, which again features some more of the unusual perils that featured in its deal earlier this year, meteorite impact and volcanic eruption risks.

Here are the ten most popular news articles, week ending 9th November 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.

U.S. primary insurer Allstate has hailed its current reinsurance program as the best coverage it’s ever had, as the availability of lower-cost ILS and alternative reinsurance capital, plus recent catastrophe bond issuances, help it to increase capital efficiencies.

The Kilimanjaro Re Ltd. (Series 2014-2) catastrophe bond, launched recently for Bermuda reinsurance firm Everest Re, reflecting strong investor demand for the ILS asset class is set to increase in size by 43% to secure the reinsurer $500m of protection.

Malta, one of the domiciles targeting the insurance-linked securities (ILS), catastrophe bond and reinsurance convergence sector, has nearly completed its new regulations which will bring together the special purpose reinsurer concept with protected cells.

Reinsurance buyers use of insurance-linked securities (ILS), instruments such as catastrophe bonds and other collateralized reinsurance structures, are approaching a saturation point in mature markets such as Florida, according to Validus CEO Ed Noonan.

Florida Citizens takeout insurer Heritage Insurance Holdings reaped the benefits of being a first time catastrophe bond sponsor this year, with its two cat bond issues through Citrus Re Ltd. lowering its cost of reinsurance protection.

The California Earthquake Authority is returning to the catastrophe bond market with its latest issuance under a newly registered vehicle. The Ursa Re Ltd. (Series 2014-1) cat bond is targeting at least $350m of collateralized California quake reinsurance.

Alternative reinsurance capital, in the form of catastrophe bonds and other collateralized reinsurance instruments, now makes up close to 6% of Asia’s catastrophe reinsurance limit, according to an estimate from reinsurance broker Guy Carpenter.