Insurance linked securities news, ILS news

RenaissanceRe has for a second time increased the target size for its latest catastrophe bond, with the company now seeking $350 million of multi-peril retrocessional reinsurance from the Mona Lisa Re Ltd. (Series 2025-1) issuance.

Here are the ten most popular news articles, week ending December 1st 2024, 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.

The California Earthquake Authority (CEA) did not come back to the reinsurance market at its typical October 1st renewal, allowing roughly $511 million of cover to expire and it now expects to re-evaluate its risk transfer need at the January renewals, meaning a $215 million catastrophe bond will likely mature without renewal later this month.

Reflecting the ability of the majority of the market to absorb initial mark-to-market losses from hurricane Milton within just a number of weeks, the broad benchmark index for insurance-linked securities (ILS) funds, the Eurekahedge ILS Advisers Index, delivered a positive 0.81% return for the month of October 2024.

The stable return profile of catastrophe bonds and their historically low correlation with broader financial markets have traditionally been the main reasons investors considered an allocation of cat bonds into their portfolio, however, more recently, investors have started recognising catastrophe bonds for their social impact, as per a new report from the Man Group.

The group of catastrophe bond funds in the UCITS format have already reached a year-to-date return of 12.1% by November 15th, as the Plenum CAT Bond UCITS Fund Indices continues to demonstrate the very attractive returns possible from cat bond investments.

Amundi US Investment Management has continued to experience strong demand for its most recently launched dedicated insurance-linked securities (ILS) fund strategy, with the Pioneer CAT Bond Fund now surpassing $500 million in assets under management.

Quaestio Capital SGR S.p.A., an Italian asset manager based in Milan, has launched its first insurance-linked securities (ILS) fund strategy and has raised €130 million for it, with a plan to invest across catastrophe bonds and private ILS arrangements through a multi-manager, fund-of-fund allocation approach.

RenaissanceRe has increased the target size for its latest catastrophe bond, with the company now seeking $300 million in multi-peril retrocession from the Mona Lisa Re Ltd. (Series 2025-1) issuance, while the price guidance has fallen for both tranches of notes.

Talanx has now successfully secured the targeted $100 million of parametric earthquake protection from its debut catastrophe bond, as the $100 million of Maschpark Re Ltd. (Series 2024-1) notes have now been priced at the low-end of initial guidance.