Read all of our parametric cat bond news, analysis and reporting in this archive.
Parametric triggers have always featured in the catastrophe bond market since its inception, with certain types of sponsors and risk transfer use-cases benefiting from the predictable and transparent payout structures they provide.
Parametric catastrophe bonds offer a way coverage can be secured for perils and regions where economic exposures are the main threat, rather than insured losses.
Parametric cat bonds are also often utilised by corporate cat bond sponsors, as a way to augment protection for exposures including business interruption type risks.
The government of Puerto Rico is seeking $75 million in parametric insurance protection against the financial impacts of named storms and earthquakes from the capital markets, through a new Puerto Rico Parametric Re Ltd. (Series 2024-1) catastrophe bond transaction, Artemis has learned.
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The notes from the Acorn Re Ltd. (Series 2023-1) parametric earthquake catastrophe bond transaction have now been priced and in the end will only provide its sponsor $150 million in protection, so falling short of its upper-target, with pricing seeming to be prioritised.
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New York transport operator the Metropolitan Transportation Authority (MTA) is back in the catastrophe bond market with what will be its fourth issuance, seeking a $75 million or larger renewal of its parametric storm surge protection from a new MetroCat Re Ltd. (Series 2023-1) transaction.
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White Rock Insurance (SAC) Ltd. has issued a sixth transaction in the Japanese Asagao private parametric earthquake catastrophe bond series, with a smaller that typical $4.6 million Asagao VI transaction coming to light.
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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.
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The California Senate is currently hearing readings of a new bill focused on legislation for extreme heat conditions, part of which includes a push to identify how heat-indices could be used as parametric triggers, including for catastrophe bonds.
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A fourth Asagao private catastrophe bond transaction has come to light, with the nearly $68 million Asagao IV transaction the latest to be issued by insurance and reinsurance broker Aon’s Bermuda domiciled Class 3 and Class C insurer and segregated accounts company White Rock Insurance (SAC) Ltd.
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The $50 million Wrigley Re Ltd. (Series 2021-1) catastrophe bond transaction, that will provide parametric earthquake insurance protection to a real estate captive insurer owned by investment giant Blackstone, has now been priced and its coupon fixed approximately 20% below the initial mid-point of price guidance.
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A third Asagao private catastrophe bond transaction, a roughly $18.3 million Asagao III – White Rock Insurance (SAC) Ltd., has been issued by insurance and reinsurance broker Aon’s Bermuda domiciled Class 3 and Class C insurer and segregated accounts company White Rock Insurance (SAC) Ltd.
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The second parametric earthquake catastrophe bond Sierra Ltd. (Series 2021-1), sponsored by specialist mortgage security focused investment manager Bayview Asset Management, LLC, has now been successfully upsized to $200 million, while pricing for each of the two tranches of notes has settled at the bottom end of reduced guidance.
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