Insurance linked securities news, ILS news

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.

Pricing has tightened further for two of the tranches of notes being issued as part of Liberty Mutual’s new Mystic Re IV Ltd. (Series 2025-1) catastrophe bond, as the insurer looks set to be another to benefit from strong investor demand and strong cat bond execution in the primary market.

Here are the ten most popular news articles, week ending December 15th 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.

US insurance firm Progressive is targeting even more favourable price execution for its latest venture to the catastrophe bond market, with the spread guidance for its new $345 million Bonanza Re Ltd. (Series 2024-1) issuance having fallen further in the latest update, we understand.

The market should expect Swiss Re to continue building out its capabilities across insurance-linked securities (ILS) and alternative reinsurance capital, as the company is benefiting from their growth, while investors in Alternative Capital Partners (ACP) structures have been enjoying “very strong performance”, CFO John Dacey said today.

Munich Re’s collateralised reinsurance sidecar structures grew to $650 million in 2024, as the company elevated its use of retrocession, aligned with its growth in natural catastrophe exposure from its underwriting.

Global reinsurance company Swiss Re said today that its third-party capital markets focused Alternative Capital Partners (ACP) division is supporting its long-term growth trajectory in natural catastrophe risks.

Qube Research & Technologies (QRT), a global quantitative and systematic investment manager that specialises in a technology and data-driven approach to allocation across liquid asset classes, has hired former Schroders executive Daniel Ineichen to lead an insurance-linked securities (ILS) strategy.

Mapfre Re, the global reinsurance company headquartered in Spain, has said it is “very satisfied” with securing its debut catastrophe bond, the Recoletos Re DAC (Series 2024-1) issuance, saying that the deal was positively received by the capital markets.