private cat bond

The catastrophe bond and related insurance-linked securities (ILS) market slowed down as is seasonally anticipated during the third-quarter of 2023, but while the $549 million of issuance was below the ten-year average for the period, the catastrophe bond market remains on track for a record year in 2023, Artemis’ latest quarterly report shows.

Six tranches of privately placed catastrophe bonds have been issued with a total value of $87.6 million, by Isosceles Insurance Ltd., the Bermuda-domiciled private insurance-linked securities (ILS) and catastrophe bond platform operated by Marsh McLennan and reinsurance broker Guy Carpenter.

Aon’s private catastrophe bond platform Randolph Re has completed a new issuance of $45 million of Randolph Re (Series 2023-3) private cat bond notes that are exposed to wildfire risks, for an unnamed sponsor that we assume will again be California headquartered property casualty insurer Mercury Insurance.

Property catastrophe bond issuance in 2023 has now exceeded the $10 billion mark, and so is well on track to beat the previous annual record of $12.5 billion seen in 2021, Artemis’ data shows.

After a very busy first-half for the catastrophe bond market saw issuance of property cat bonds reach a new high of $9.7 billion, the Artemis community is forecasting the market will remain busy through the rest of 2023.

Seaside Re private catastrophe bond transactions from the 2020, 2021, and 2022 vintages continue to have their maturity dates extended, to allow for ongoing development of catastrophe losses that could trigger them, with almost $110 million of notes having their maturity extended out to mid-October.

The catastrophe bond and related insurance-linked securities (ILS) market saw $7.1 billion of new issuance in the second-quarter of 2023, becoming the biggest single quarter of issuance in the market’s history, Artemis’ latest quarterly report shows.

Randolph Re, insurance and reinsurance broker Aon’s private catastrophe bond issuance and placement platform, has completed a EUR 100 million private cat bond transaction, Randolph Re (Groupama), for Paris headquartered insurer Groupama.

Eclipse Re Ltd., a private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform owned and operated by Artex Capital Solutions, has completed the issuance of two private cat bond arrangements totalling almost $18.8 million of risk capital issued.

There has been a further extension of maturity for a number of the 2022 vintage Seaside Re private catastrophe bond transactions that were issued by German reinsurance firm Hannover Re’s segregated accounts vehicle, Kaith Re Ltd., but some have now been allowed to mature, indicating greater clarity over the covered loss events.