Insurance linked securities news, ILS news

A new parametric earthquake catastrophe bond transaction with a $100 million initial target, named Acorn Re Ltd. (Series 2023-1), will be the first in this series where its coverage will overlap with an existing issuance, presumably reflecting a desire to stagger maturity of catastrophe reinsurance coverage for the beneficiaries.

Conduit Re, the Bermuda headquartered global reinsurance company that launched for the 2021 underwriting year, is targeting lower pricing for its first and still $100 million Stabilitas Re Ltd. (Series 2023-1) catastrophe bond, that seeks to secure retrocession from the capital markets for the company.

Catastrophe bond funds in the UCITS format are averaging approximately 6.20% returns year-to-date in 2023, while over a 12-month horizon the average return is now 3.57%, even accounting for major hurricane Ian’s losses in Florida.

The California Earthquake Authority (CEA) has increased the target size for its latest catastrophe bond , with now up to $425 million of earthquake reinsurance sought from the Sutter Re Ltd. (Series 2023-1) issuance.

Here are the ten most popular news articles, week ending June 4th 2023, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

Because the first catastrophe bond sponsored by the Toka Tū Ake EQC, or New Zealand Earthquake Commission, was structured to meet its Boards ambitions of being “complementary” to the rest of its reinsurance tower, it sets the scene for future issuances, EQC’s CEO and Head of Risk Financing told Artemis in an exclusive interview.

Vermont Mutual Insurance Company has returned to the catastrophe bond market, seeking to sponsor a Baldwin Re Ltd. (Series 2023-1) cat bond, through which it aims to secure $100 million in multi-year collateralized reinsurance to cover losses from multi-peril events in north east US states.

With more than two decades of experience in managing third-party reinsurance capital, and the recent creation of its casualty and specialty dedicated vehicle, Bermuda-based RenaissanceRe has become somewhat of a one-stop shop for ILS and reinsurance, according to Chris Parry, Global Head of Capital Partners.

With mid-year reinsurance renewals done, Ernie Garateix, CEO of Heritage Insurance Holdings, said recently that the new Citrus Re catastrophe bond his company has sponsored will be complementary to its renewed program.

Home insurtech Hippo has hailed the completion of its subsidiary Spinnaker Insurance Company’s debut Mountain Re Ltd. (Series 2023-1) catastrophe bond, saying the cat bond provides “economically efficient” reinsurance, as well as access to the capital markets.