FloodSmart Re Ltd

The U.S. Federal Emergency Management Agency (FEMA) is back in the catastrophe bond market, looking to secure at least $350 million of named storm linked flood reinsurance protection for the National Flood Insurance Program (NFIP), with the issuance of a FloodSmart Re Ltd. (Series 2024-1) cat bond.

FEMA has renewed the National Flood Insurance Program’s (NFIP) traditional reinsurance tower at a larger $619.5 million in size for 2024, a 23% increase on the prior year’s placement.

Artemis can report that the reinsurance carriers participating in the lowest layer of FEMA’s 2022 National Flood Insurance Program (NFIP) reinsurance tower now appear to be facing losses from hurricane Ian, as the NFIP’s claims from the storm have risen to $4.3 billion.

The U.S. Federal Emergency Management Agency (FEMA) has begun the process to renew the National Flood Insurance Program’s (NFIP) traditional reinsurance tower for 2024 this week.

A tranche of FloodSmart Re catastrophe bond notes that provide reinsurance to the US Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP) have now been deemed safe from potential loss due to hurricane Ian, with the notes redeemed and capital to be returned to investors, Artemis has learned.

Reinsurance carriers participating in the lowest layer of FEMA’s National Flood Insurance Program (NFIP) reinsurance tower are now at-risk of losses, as the NFIP’s claims from hurricane Ian have surpassed $3.9 billion, nearing the $4 billion trigger.

Insured claims paid by FEMA’s National Flood Insurance Program (NFIP) after hurricane Ian have now reached above $3.4 billion, bringing the figure close to the lower-end of its most recent loss estimate for the major storm, Artemis understands.

There has been an additional $10 million redemption of outstanding principal from the extended Class B tranche of notes issued under the US Federal Emergency Management Agency’s (FEMA) FloodSmart Re Ltd. (Series 2020-1) catastrophe bond issuance, Artemis has learned.

One tranche of the FloodSmart Re catastrophe bond program has had its maturity extended to allow for further development of the NFIP’s flood insurance losses from hurricane Ian, Artemis has learned.

The U.S. Federal Emergency Management Agency (FEMA) has hailed the successful completion of its latest catastrophe bond despite the difficult market environment, after the FloodSmart Re Ltd. (Series 2023-1) deal secured it $275 million of flood reinsurance for the NFIP.