Insurance linked securities news, ILS news

Liberty Mutual has now secured the upsized target of $325 million of fully collateralized reinsurance protection through its new Mystic Re IV Ltd. (Series 2025-1) catastrophe bond, while the insurer benefited from high investor demand and strong cat bond execution to price the deal largely below initial guidance.

Having previously indicated that it was cautious on reinsurance market conditions and undecided as to whether to add to its insurance-linked securities (ILS) investments for the January 2025 renewals, the Florida State Board of Administration now appears set to move forwards and increase its allocation to the sector.

The catastrophe bond and insurance-linked securities (ILS) market is expected to see healthy demand from investors in 2025, but the firmness and trajectory of pricing in the sector, and more broadly in reinsurance, remains less certain, according to Mark Gibson of Schroders Capital.

Fidelis Insurance is now looking to upsize its newest catastrophe bond issuance, with the Herbie Re Ltd. (Series 2024-2) transaction aimed to secure the company $375 million in retrocessional reinsurance.

Progressive, the US insurance group, has now secured the upsized target of $345 million of reinsurance protection from its new Bonanza Re Ltd. (Series 2024-1) catastrophe bond issuance, while the notes were priced at the bottom of lowered guidance in the case of all three tranches, we understand.

Beazley, the London headquartered specialty insurance and reinsurance underwriter, is now looking to upsize its second natural catastrophe bond, with the London Bridge 2 PCC Limited (Fuchsia 2 – 2024-1) deal now targeted to provide $200 million of protection to the company.

Hamilton, the Bermuda based insurance and reinsurance holding company, has continued to earn positive performance fees from activities under its Ada Capital Management third-party capital platform and its Ada Re collateralized reinsurance and retrocession underwriting vehicle, in the third-quarter of this year.

TD Insurance, part of Canada’s TD Bank group, is seeking C$150 million in reinsurance from the capital markets through its debut MMIFS Re Ltd. (Series 2025-1) catastrophe bond deal, which would be the first natural cat bond to solely cover perils in that country, Artemis has learned.

Specialist investment manager Twelve Capital has highlighted another stunning year for the catastrophe bond market, pointing out that the Swiss Re cat bond Index has returned 40% in just two years, but also sharing a note of caution that further spread tightening is possible with investor demand elevated for the asset class.

According to reports, the US state of Colorado is exploring whether catastrophe bonds may be a suitable risk transfer mechanism to help it deal with growing wildfire related risks and address insurance affordability.