Private cat bond news

The catastrophe bond and related insurance-linked securities (ILS) market has set another new record, as the amount of issuance we’ve recorded across a twelve-month period to end of September 2021 reached a new all-time-high.

Catastrophe bond and related insurance-linked securities (ILS) issuance continued at record pace through the third-quarter of 2021, with over $2.7 billion of new risk capital issued and the market now well on-track to beat all its records in 2021, according to the latest report and data from Artemis.

So far this year, 21 privately placed catastrophe bond transactions have been issued with a combined value of more than $672 million, which is almost double the volume witnessed for the entirety of 2020, as shown by the Artemis Deal Directory.

Isosceles Insurance Ltd., the private insurance-linked securities (ILS) and catastrophe bond issuance platform operated by Marsh McLennan and reinsurance broker Guy Carpenter, has issued three new tranches of notes, that together total just over $32.75 million of private cat bond notes.

Mercury Insurance, a California headquartered property casualty insurer, has secured $50.7 million of California wildfire reinsurance protection through a Randolph Re (Series 2021-1) private catastrophe bond issued using Aon’s platform.

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.

Activity in the catastrophe bond and related insurance-linked securities (ILS) market accelerated again in the second-quarter of 2021, with the three-months seeing an incredible $8.5 billion of new risk capital come to market, according to the latest report and data from Artemis.

A new issuance of privately placed catastrophe bond notes, named after their segregated account as Aquarelle, is likely to be, at $250 million in size, the largest private cat bond or insurance-linked securities (ILS) placement ever issued.

Isosceles Insurance Ltd., the private insurance-linked securities (ILS) and catastrophe bond platform operated by Marsh McLennan and reinsurance broker Guy Carpenter, has issued a new $25 million Isosceles Insurance Ltd. (Series 2021-B1) transaction, the third we’ve listed from the vehicle so far.

The number of privately placed catastrophe bond transactions issued in the first-quarter of 2021 is the most ever recorded for the period and ensured that once again, the dollar-value of issuance from these cat bond lite deals came in above the ten-year average for the period.