Pandemic cat bond news

Pandemic cat bond news related to the World Bank’s issuance of pandemic catastrophe bonds as part of the insurance window financing for the Pandemic Emergency Financing Facility (PEF).

The World Bank’s IBRD issued $320 million of pandemic catastrophe bonds and $105 million of pandemic risk linked swaps to provide capital markets backed reinsurance financing for the PEF.

The pandemic cat bond notes faced threats from an Ebola outbreak and the 2019/20 Covid-19 coronavirus pandemic.

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ILS tech can be used to transfer pandemic risk: Syroka, Fermat Capital

The World Bank’s 2017 pandemic catastrophe bond has provided a blueprint for how insurance-linked securities (ILS) technology can be leveraged to transfer pandemic risk, according to Joanna Syroka, Director of New Markets, Fermat Capital Management, LLC. Issued in July of 2017 by the World Bank on behalf of its Pandemic Emergency read the full article →

RGA explored pandemic risk transfer, including catastrophe bonds

Reinsurance Group of America (RGA) has explored a variety of ways of transferring mortality risks related to pandemics off its books, including capital markets backed instruments such as catastrophe bonds. The life focused reinsurance firm has a significant mortality book, of course, as a result of which pandemics are one of read the full article →

India moots parametric Pandemic Risk Pool, with bonds part of capacity

A working group of the Indian insurance and reinsurance regulator IRDAI has proposed the creation of a parametric Indian Pandemic Risk Pool, which could use pandemic bonds as part of its capacity. The regulator and Indian government tasked an industry working group with exploring the possibility of creating a pandemic risk read the full article →

Capital markets could fund $2bn of pandemic bonds: Hannover Re CEO Henchoz

The participation of the capital markets in financing the world's most pressing risks is an important source of capacity and investors could support up to $2 billion of capacity to back pandemic catastrophe bonds, Hannover Re CEO Jean-Jacques Henchoz explained in a recent interview. Speaking to Swiss, German-language newspaper Neue Zürcher read the full article →

World Bank shelves plan for PEF 2.0 & further pandemic cat bonds: Report

Media reports state that the World Bank has shelved plans for any future issuance of pandemic catastrophe bonds and for a version two of its Pandemic Emergency Financing Facility (PEF). This is despite the fact the first issuance of PEF supporting pandemic bonds paid out, as the terms dictated they would, read the full article →

IDA payments from PEF pandemic bonds & swaps to begin next week

Payments from the World Bank's Pandemic Emergency Financing Facility (PEF) to member countries of the International Development Association (IDA) could begin as early as next week, as the capital lost by holders of the triggered pandemic catastrophe bonds and swaps looks set to be mobilised rapidly. As we were first to read the full article →

World Bank pandemic bonds & swaps triggered, will pay out $195.84m

The World Bank issued pandemic catastrophe bonds and pandemic risk-linked swaps have now been triggered and will pay out $195.84m, we've learned today, after the final trigger parameter of the growth-rate of coronavirus cases turned positive. Sources told us that the all-important growth rate factor turned positive as of March 31st, read the full article →

World Bank pandemic cat bonds & swaps not triggered for payout yet

The World Bank issued pandemic catastrophe bonds, as well as the pandemic risk-linked swaps that were issued at the same time, have not yet been triggered by the Covid-19 coronavirus pandemic as the growth rate hasn't reached the necessary level to breach the parametric trigger. No loss payment is due at read the full article →

Investor interest can survive pandemic cat bond loss: Seo, Fermat Capital

The World Bank’s pandemic catastrophe bond issuance looks increasingly likely to suffer a significant loss of investor principal due to being triggered by the ongoing Covid-19 coronavirus outbreak, but John Seo of Fermat doesn’t think that will dent investor appetite for the risk. As we explained in this recent article, it read the full article →

Coronavirus may trigger $196m World Bank cat bond & swap payout

The payout from the World Bank issued pandemic catastrophe bonds, as well as the pandemic risk-linked swaps that were issued at the same time, may reach just under $196 million in total, if the ongoing Covid-19 coronavirus outbreak triggers the financial instruments. The impact from the Covid-19 coronavirus pandemic has more read the full article →