Hurricane Ian 2022

American Integrity Insurance is set to benefit from a roughly $13.2 million recovery from the original $75 million of Integrity Re Ltd. (Series 2022-1) catastrophe bond notes, with the remaining ~$61.8 million of principal now having its maturity extended by a further year, Artemis can report.

Two more outstanding catastrophe bonds that are exposed to potential losses from hurricane Ian have been marked down further on secondary pricing sheets, as US primary insurer American Integrity has increased its estimate for the storm, Artemis has learned.

According to sources, the $40 million Astro Re Pte. Ltd. (Series 2021-1) catastrophe bond, sponsored in 2021 by U.S. primary insurance group First Protective on behalf of itself and subsidiary Frontline Insurance, has been marked down in the secondary market, on concerns over exposure to rising losses from 2022’s hurricane Ian.

SCOR has reported a significant -7.2 point benefit to its combined ratio due to positive development of prior year catastrophe reserves, with hurricane Ian seen as the main contributor, helping the company report an 85% combined ratio for the full year 2023.

US primary insurer American Integrity has raised its estimate for losses from 2022’s hurricane Ian and this has caused a further decline in the secondary market prices for some of its Integrity Re catastrophe bonds, with one issuance now marked as likely facing a total loss, Artemis can report.

We’ve learned that the hurricane Ian side pocket investment situation has improved considerably for some insurance-linked securities (ILS) fund managers, with a number of key exposures now failing to reach the levels of cedent loss needed to attach coverage in recent weeks.

Because some of the capital in the reinsurance industry that had been nervous about potential losses from last year’s hurricane Ian has now calmed down somewhat, Russell Merrett, Chief Underwriting Officer of Inigo, the Lloyd’s syndicate owner and specialty underwriter, believes there will be more certainty on capital availability at this year’s renewals.

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.

According to our sources, insurance-linked securities (ILS) fund managers are having continued success at closing down certain exposures to last year’s hurricane Ian, with a number of side pockets being finalised and trapped capital continuing to be freed.