Insurance linked securities news, ILS news

A new financial structure that can provide community-based climate insurance or risk transfer protection from the capital markets, while incorporating resilience, advanced funding for loss-prevention and mitigation, through an insurance-linked security (ILS) designed structure has been proposed.

Another sponsor is re-entering the catastrophe bond market after a hiatus away from it in 2023, as NJM Insurance seeks $175 million in named storm reinsurance from the capital market with a new cat bond, a Lower Ferry Re Ltd. (Series 2023-1) issuance.

The Hanover Insurance Group has now finalised its new Commonwealth Re Ltd. (Series 2023-1) catastrophe bond issuance to secure the 20% upsized target for $150 million of protection, while pricing the notes at the bottom-end of initial guidance.

The California Earthquake Authority (CEA) has now finalised its new Sutter Re Ltd. (Series 2023-1) catastrophe bond issuance, securing the upsized target of $425 million of reinsurance protection, representing a 42% increase from the initial launch size.

The recently completed sponsorship of its debut second and subsequent event focused catastrophe bond, the $100 million Gateway Re Ltd. (Series 2023-2) deal, is a “necessary layer of additional protection during the 2023 Atlantic hurricane season,” SURE President Ed Konar has explained, while Swiss Re’s Jean-Louis Monnier said it represents efficient reinstatement capacity.

White Mountains has reported significantly improved performance from its investments into the ILS funds managed by Elementum Advisors in 2023 to the end of April, while also explaining again the ILS market conditions are highly attractive at this time.

Strategic Risk Solutions, Inc. (SRS), an independent provider of insurance, reinsurance and captive management and consulting services, has announced the hiring of Charles ‘Chuck’ Scherer in Bermuda, as the firms insurance-linked securities (ILS) ambitions continue to expand.

Artemis has learned that another catastrophe bond from the Residential Re series that provided USAA with a collateralized source of aggregate catastrophe reinsurance protection has had its maturity date extended, following a return of half the outstanding principal to investors that totalled $30 million.

A new parametric earthquake catastrophe bond transaction with a $100 million initial target, named Acorn Re Ltd. (Series 2023-1), will be the first in this series where its coverage will overlap with an existing issuance, presumably reflecting a desire to stagger maturity of catastrophe reinsurance coverage for the beneficiaries.

US primary insurer The Hanover Insurance Group, Inc. has lifted the target for its new Commonwealth Re Ltd. (Series 2023-1) catastrophe bond to $150 million, while at the same time the price guidance range has been narrowed, we understand.