Catastrophe bond news

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.

Here are the ten most popular news articles, week ending 2nd November 2014, on catastrophe bonds, reinsurance capital and related risk transfer topics, from the last seven days on Artemis. To ensure you never miss a thing  subscribe to the weekly Artemis email newsletter updates.

The recent $10.37m LI Re (Series 2014-1) securitization of a segregated cell of reinsurance company Hannover Re’s Bermuda segregated accounts insurer Kaith Re Ltd., was a property catastrophe insurance-linked security (or catastrophe bond) it transpires.

Universal Insurance Holdings, Inc. (NYSE: UVE), a U.S. primary property and casualty insurer, may look to the catastrophe bond market as a way to tap additional alternative sources of ILS capital as part of its 2015 reinsurance renewal.

Insurance and reinsurance companies need to find ways to use the influx of alternative capital, from third-party investments in reinsurance and insurance linked assets, to cover new and emerging categories of risk, according to CEO of XL Group Michael McGavick.

Yet again Bermuda domiciled insurance, reinsurance and alternative capital manager Validus Holdings shows that the focus on its AlphaCat third-party capital and insurance-linked securities funds unit is paying off as it writes more business and brings in more income.

As you’d expect, large U.S. primary insurers are monitoring emerging trends in the reinsurance marketplace, particularly the growth of alternative capital and ILS, the emergence of new reinsurance structures and the reduction in reinsurance pricing.

Bermuda headquartered reinsurance company Everest Re is returning to the catastrophe bond market with its second issuance this year, with the launch to investors of Kilimanjaro Re Ltd. (Series 2014-2) a $350m U.S. and Canada earthquake cat bond.

The California Earthquake Authority (CEA), the publicly managed residential earthquake insurance provider, is proposing to reduce homeowners rates, as savings made due to catastrophe bonds and lower-cost reinsurance flow through to consumers.