Mexico’s cat bond coverage continues, despite shuttering of FONDEN

Mexico's still in-force $485 million IBRD / FONDEN 2020  catastrophe bond will continue to provide the country with important disaster insurance protection, as the beneficiary of the cover has been shifted away from the shuttered FONDEN disaster fund to the country's Treasury. We're told that a notification has been sent to read the full article →

Mexico’s cat bond program set for shake-up or cancellation, as FONDEN to close

Mexico's Fund for Natural Disasters (El Fondo de Desastres Naturales), more commonly known as FONDEN, is set to be dismantled along with more than 100 other government funded public trusts, as lawmakers in the senate voted to reform this area of public funding. Lawmakers have railed against wasted public spending across read the full article →

Hurricane Willa pressure rises, puts Mexico cat bond in the clear

Hurricane Willa's minimum central pressure has now risen as the storm has weakened slightly, which puts Mexico's World Bank supported IBRD / FONDEN 2017 catastrophe bond in the clear as the storm will now not be sufficiently intense when it enters the parametric box to trigger any payout. Yesterday hurricane Willa read the full article →

Hurricane Willa pressure drops, risk to Mexico’s Fonden 2017 cat bond rises

Hurricane Willa has intensified on approach to the Pacific coastline of Mexico with its winds reaching Category 5 strength at 160 mph and the central pressure dropping further to 925 mb, increasing its threat to trigger a $110 million Class C tranche of notes from the World Bank supported IBRD read the full article →

Efficient, precise, refined, the World Bank’s latest cat bond

The parametric trigger in the latest catastrophe bond to be issued with the assistance of the World Bank, the $360 million Mexico earthquakes and named storm cat bond IBRD / FONDEN 2017, offers the sponsoring government of Mexico a more efficient layer of risk transfer, due to its more precise read the full article →

World Bank completes Mexico cat bond, ILS provides bulk of capacity

The World Bank has announced the completion of its $360 million Mexico catastrophe bond transaction, which protects against Mexico earthquakes and named storms, and of which the majority of the capacity came from the insurance-linked securities (ILS) space. The parametric structured catastrophe bond transaction, called IBRD / FONDEN 2017, is composed read the full article →

Mexico’s FONDEN cat bond secures $360m, priced at lowest guidance

The latest catastrophe bond that will provide a source of reinsurance risk transfer for Mexico’s Fund for Natural Disasters (El Fondo de Desastres Naturales), the IBRD / FONDEN 2017 multi-peril cat bond, has secured its targeted $360 million size, while the pricing has now been fixed at the lowest end read the full article →

Target for Mexico’s FONDEN 2017 cat bond lifted to $360m

The target size of the recently launched IBRD / FONDEN 2017 multi-peril catastrophe bond, which will secure a source of reinsurance risk transfer for Mexico's Fund for Natural Disasters (El Fondo de Desastres Naturales), has been increased by 24% with the deal now expected to result in issuance of up read the full article →

Mexico returns with new Fonden 2017 multi-peril cat bond

Mexico has returned to the catastrophe bond market with a new transaction seeking a source of reinsurance risk transfer for its Fund for Natural Disasters (El Fondo de Desastres Naturales), better known as FONDEN, in a $290 million deal we've called IBRD / FONDEN 2017, assisted by the World Bank. Like read the full article →

FONDEN, Mexico’s disaster fund, exceeds its annual budget

You would be forgiven for thinking that FONDEN, the Fund for Natural Disasters of Mexico, would be perfectly able to cope with losses from natural disasters as it has the MultiCat Mexico 2009 Ltd. catastrophe bond to fall back on. Unfortunately, the types of disasters which cause regular problems in read the full article →