expected loss

According to insurance-linked securities (ILS) focused consultancy Lane Financial LLC there is growing evidence that risk models used by ILS and collateralised reinsurance markets may underestimate the true levels of losses resulting from catastrophe events.

At the end of the fourth-quarter of 2013 the average risk premium of the catastrophe bond market declined once again, with non-U.S. wind exposed cat bond transactions seeing the biggest fall in premiums.

It’s time for another of our quarterly looks at two key metrics which reflect recent trends in the catastrophe bond issuance market. These two metrics demonstrate where insurance-linked securities investors risk appetite lies, when it comes to cat bonds, and how pricing has moved recently.

With the recent well documented decline in pricing of insurance-linked securities and catastrophe bonds having accelerated into the third-quarter the average multiple at market of catastrophe bonds has dropped to historically low levels, according to data from Lane Financial LLC.

Every few months we like to take a closer look at two key metrics which help to better demonstrate recent trends in the catastrophe bond primary issuance market. These two metrics help to demonstrate where insurance-linked securities investors risk appetite lies when it comes to cat bond and how pricing has moved recently.

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 […]

Sponsors of and investors in catastrophe bonds will be pleased to read the recently published paper which looks at the modelled expected loss figures of new cat bond issuances and concludes that the numbers derived at issue are very close to the actual loss experience of the cat bond market. The paper from consulting firm […]

One of the metrics we like to take a look at occasionally is the average expected loss of the outstanding catastrophe bond market to see what it can tell us about the kind of transactions that have come to market and where the cat bond and ILS market feels its risk appetite sweet spot is. […]

The average expected losses, as measured at deal issuance, of the outstanding catastrophe bond market remained relatively static throughout 2012, according to data from insurance-linked securities consultancy Lane Financial LLC. In its latest quarterly ILS market update report data shows that the average expected loss has risen by just .01 over the course of the year. […]

As we reported last week here, according to insight from Willis Capital Markets & Advisory (WCMA) the strong levels of primary catastrophe bond issuance in 2012 has now taken the cat bond market to an all time high in terms of size. That was one of the key insights from their recently published Q3 2012 ILS […]