Insurance linked securities news, ILS news

Catastrophe bond funds in the UCITS format have now delivered around 14% in returns year-to-date on average, while their assets under management as a group had recovered to more than $10 billion by the end of October 2023.

Insurance-linked securities (ILS) are seen as one of the top choices for investors seeking diversification and to add performance to their portfolios, in the private assets category of investments, according to survey data from Schroders.

Having analysed data from the secondary market for insurance-linked securities (ILS), consultancy Lane Financial LLC concludes that the market for catastrophe bonds and ILS will remain in “hard market” territory in 2024, but perhaps only “half as hard” as might have been forecast at the start of this year.

Allied World Assurance Company (AWAC) has successfully priced its latest catastrophe bond, securing the upsized target for $275 million of reinsurance protection from its 2001 CAT Re Ltd. (Series 2023-1)  renewal transaction, while the spread was priced roughly 14% below the mid-point of initial guidance.

The North Carolina Farm Bureau has now secured and priced its debut Blue Ridge Re Ltd. (Series 2023-1) catastrophe bond issuance at the upsized target size of $400 million, while the notes have been priced within the initial guidance range.

RenaissanceRe, the Bermuda based reinsurance and third-party capital management specialist, is working to bring investors in the AlphaCat Managers offering into its Capital Partners products, in the wake of the completion of the firms acquisition of Validus from AIG.

The California Earthquake Authority (CEA) has returned to the catastrophe bond market again, seeking $400 million or more in collateralized earthquake reinsurance from the capital markets from an Ursa Re Ltd. (Series 2023-3) issuance.

AXIS Capital, the Bermuda headquartered specialty re/insurer, has now successfully priced the very first 144a cyber catastrophe bond and the $75 million Long Walk Reinsurance Ltd. (Series 2024-1) transaction will complete with pricing below the initial target guidance, an important signal of ILS market appetite for cyber risks.

R&Q Insurance Holdings Ltd., the specialty player that is soon to return to its original legacy insurance and reinsurance focus, is already evaluating opportunities to launch a second collateralised sidecar vehicle, while the fee income earned from its first legacy sidecar Gibson Re rose through the first-half of this year.

Beazley, the London headquartered specialty insurance and reinsurance underwriter, has now entered the 144A catastrophe bond market with its first cyber deal, seeking $75 million in reinsurance from this PoleStar Re Ltd. (Series 2024-1) cyber cat bond issuance, Artemis can report.