Insurance linked securities news, ILS news

Twelve Capital has analysed what it can mean for a traditional 60/40 stocks and bonds investment portfolio when catastrophe bonds are added to the mix, finding even a modest cat bond allocation can improve returns and risk metrics.

The New Zealand Superannuation Fund (NZ Super Fund), one of the government pension investment providers, has reported an impressive 12.6% return from its investments into natural catastrophe reinsurance through catastrophe bonds and other insurance-linked securities (ILS) in the last year of record.

Mark-to-market pricing implied losses for the catastrophe bond market from hurricanes Helene and Milton are estimated at ~$380 million, at which level actual losses to the cat bond market in 2024 are running below the expected level, suggesting pricing will remain in neutral territory or could even soften slightly for the January renewals, according to […]

With the catastrophe bond market pipeline having sprung back to life as the US wind season passes its meteorological peak, cat bond fund manager Icosa Investments AG has analysed the issuance trend and sees it still running at a record pace.

We’ve learned that the targeted issuance size has increased to as much as $450 million for the Acorn Re Ltd. (Series 2024-1) parametric earthquake catastrophe bond issuance, while at the same time the price guidance has been lowered to below the initially offered range.

Catastrophe bond funds in the UCITS format grew strongly in recent months, adding approximately 7% in assets during the third-quarter of 2024 to take their combined assets under management to a new record high of almost $13.05 billion.

Insurer USAA has returned for what will be the 44th catastrophe bond issuance we have tracked from the company, initially targeting $325 million of occurrence reinsurance protection from a new Residential Reinsurance 2024 Limited (Series 2024-2) deal, Artemis has learned.

The Ambassador US mutual catastrophe bond fund strategy operated by advisor Embassy Asset Management has continued to attract inflows from investors through the Atlantic hurricane season, reaching more than $329 million in assets under management (AUM) this month.

According to executives at the World Bank, artificial intelligence (AI) based improvements to catastrophe risk modelling could in future allow more transactions to be brought to the catastrophe bond market, with less lead time and potentially wider investor acceptance.

Twelve Capital, the Zurich-headquartered insurance-linked securities (ILS), catastrophe bond and reinsurance investment manager, has reached a new milestone in terms of third-party assets under management, surpassing $4 billion for the very first time across its cat bond and ILS portfolios.