Insurance linked securities news, ILS news

Kelvin Re Limited, the previously ILS capital backed Guernsey based reinsurance company, is not expected to form a part of its new owner TD Bank’s long-term plans, which has led rating agency AM Best to be cautious on the outlook for the company.

Florida’s Citizens Property Insurance Corporation has now finalised the pricing on its first industry loss trigger catastrophe bond and the Lightning Re Ltd. (Series 2023-1) issuance has secured the insurer $500 million of capital markets backed reinsurance at an 11% risk interest spread.

Slide Insurance Company, the full-stack homeowners property insurtech founded by former Heritage CEO Bruce Lucas, has entered the catastrophe bond market for the first time, seeking $100 million in named storm reinsurance protection through a Purple Re Ltd. (Series 2023-1) transaction.

The “denominator effect” and investor rebalancing across asset classes has driven some of the biggest challenges for the insurance-linked securities (ILS) market in recent months, Chris Parry, Global Head of Capital Partners at RenaissanceRe, told us in our latest Artemis Live interview.

The Andover Companies, a large mutual insurance group in the Northeast US, has increased the target size for its debut Locke Tavern Re Ltd. (Series 2023-1) catastrophe bond issuance, with now up to $175 million of reinsurance sought from the deal.

The board of Florida’s Citizens Property Insurance Corporation has approved the spend necessary to proceed with the issuance of its new $400 million to $500 million Lightning Re Ltd. (Series 2023-1) catastrophe bond, the insurers’ first industry-loss triggered deal.

Here are the ten most popular news articles, week ending March 19th 2023, 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.

Chile has secured $630 million of earthquake insurance cover through its World Bank IBRD issued arrangement, with $280 million of catastrophe swaps to add to the recently priced $350 million IBRD – Chile 2023 catastrophe bond.

The Republic of Chile has now secured the upsized $350 million size target for its new IBRD – Chile 2023 parametric earthquake catastrophe bond, with pricing of the World Bank IBRD issued transaction now finalised at the low-end of initial guidance.

USAA, the military mutual insurance firm and long-time catastrophe bond sponsor, has continued to benefit from its capital markets backed reinsurance coverage, with two more recoveries amounting to roughly $5.5 million coming from two of its 2016 vintage cat bond deals in recent weeks.