Catastrophe bond news

According to the latest report from modeling, data and analytics firm CoreLogic the total value of residential property at risk of hurricane storm surge damage is now estimated at $1.1 trillion. The report contains updated estimates for both the number and value of single-family homes exposed to hurricane-driven storm-surge damage within the United States.

Flooding across Central Europe is reaching record levels in many towns and cities after torrential rainfall struck the region in recent days. The waters are still rising in some areas of Austria, Germany and the Czech Republic and it’s possible that a meaningful insurance industry loss from this flood event could also hit reinsurers in […]

It’s time for another look at two of the metrics which give an insight into catastrophe bond transactions that have come to market recently and where the cat bond and reinsurance investment market feels its risk appetite lies. With the constant flow of new capital into the space now affecting pricing it’s a good time […]

The Residential Reinsurance 2013 Ltd. (Series 2013-1) catastrophe bond from regular cat bond sponsor U.S. primary insurer and military focused mutual insurer USAA completed successfully last Friday. The completion of its 20th Residential Re cat bond sees USAA benefit from a new $300m source of fully-collateralized reinsurance for a range of U.S. perils.

The 2013 Atlantic hurricane season officially began on the 1st of June. Follow every developing storm with Artemis. As always, you can read every market news story and article here on the Artemis news blog, subscribe to our weekly email newsletter updates and for your convenience here are the ten most popular news articles from […]

As the insurance and reinsurance industry fast approaches the 2013 Atlantic Hurricane Season, which technically begins tomorrow on the 1st June, ratings agency Fitch Ratings says that the U.S. insurance industry has the capacity to withstand potential losses from hurricane related perils, helped by the growing acceptance of hurricane risk by investors in the capital […]

Positive returns continued for managers of and investors in insurance-linked securities (ILS) and reinsurance-linked investment funds in April. The average return of ILS funds in April reached 0.83% as measured by the Eurekahedge ILS Advisers Index. This is the best April performance recorded by the Index since 2007 and the best performing month so far […]

Florida’s Citizens Property Insurance Corporation will begin the 2013 Hurricane Season in the best financial shape ever, according to recent comments made by CEO Barry Gilway. The CEO, of the insurer of last resort for many of Florida’s most hurricane exposed properties, cites the contribution that private reinsurance alongside the issuance of catastrophe bonds have […]

London based insurance-linked securities and reinsurance-linked investment manager Leadenhall Capital Partners has secured a major new $275m investment mandate from the New Zealand Superannuation Fund. It’s not the NZ Superannuation Fund’s first allocation to insurance-linked securities but it is the largest allocation to catastrophe and reinsurance linked assets the Fund has made to date.

As we wrote yesterday, insurance-linked-securities and third-party capital will continue to pressure reinsurance pricing for the foreseeable future. For some, the decline in pricing seen in property catastrophe reinsurance lines of business caused by capital markets and alternative capacity sources can be offset by rate rises on U.S. property and casualty insurance rates.