Parametric catastrophe bond news

Having recently secured its debut catastrophe bond, the $100 million Maschpark Re Ltd. (Series 2024-1) parametric earthquake issuance, German re/insurance group Talanx has said that the protection augments its need for reinsurance and to cover earthquake risks in Chile as its business grows.

Talanx has now successfully secured the targeted $100 million of parametric earthquake protection from its debut catastrophe bond, as the $100 million of Maschpark Re Ltd. (Series 2024-1) notes have now been priced at the low-end of initial guidance.

Talanx AG, the German insurance and reinsurance group, has entered the catastrophe bond market for its debut transaction, seeking $100 million or more in parametric Latin America earthquake protection through this Maschpark Re Ltd. (Series 2024-1) issuance, Artemis has learned.

The Acorn Re Ltd. (Series 2024-1) parametric earthquake catastrophe bond issuance has now been priced and its details finalised, with the issuance successfully upsized to provide $450 million of protection, while pricing was fixed below the initial guidance that was offered, Artemis can report.

There is a new parametric earthquake catastrophe bond transaction in the market, the fifth in the series of Acorn Re deals. But for the first time this $400 million Acorn Re Ltd. (Series 2024-1) issuance features two tranches of notes, each with a different duration of coverage, Artemis has learned.

While the focus for many is on what is still potential tropical cyclone nine and soon to become storm Helene on the Atlantic side, off the Pacific coast of Mexico hurricane John rapidly intensified and made landfall as a Category 3 storm which has resulted in enquiries from catastrophe bond investors.

Global reinsurance company Hannover Re said today at the Monte Carlo Rendez-Vous event that innovation remains on the agenda even while demand for traditional reinsurance remains high, citing examples of parametric risk transfer and its recent cloud outage cyber catastrophe bond.

Sponsors of catastrophe bonds with parametric triggers may benefit from advances in data and analytics that can help them in gaining a better understanding of the basis risk inherent in these instruments, analysis from AM Best suggests.

The Government of Puerto Rico’s Autoridad de Asesoría Financiera y Agencia Fiscal (Fiscal Agency and Financial Advisory Authority) has secured $282 million of parametric disaster insurance cover, with the recent $85 million Puerto Rico Parametric Re Ltd. (Series 2024-1) catastrophe bond seen as a key component that opens the door to the capital markets.

The government of Puerto Rico’s first attempt to source parametric insurance from the capital markets through a catastrophe bond appears to have been well-received by the market, as the Puerto Rico Parametric Re Ltd. (Series 2024-1) catastrophe bond has grown to $85 million in size and looks set to price at the mid-point of guidance, […]