reinsurance

The Insurance Council of Australia (ICA) has declared another “significant event” for last weekend’s severe storms that were focused on New South Wales, while will add to a summer catastrophe insured loss tally that is now at AU $1.6 billion.

The allocation to the insurance-linked securities (ILS) asset class by the City of Zurich Pension Fund has continued to expand, reaching approximately US $960 million by the end of March 2024, with mandates now with eight investment managers across life and P&C reinsurance investments.

The assets under management of the main catastrophe bond funds in the UCITS format increased by 4% over the first-quarter of 2024, to reach a new high of almost $11.4 billion by the end of the period.

American Coastal Insurance Company is set to upsize its new Armor Re II Ltd. (Series 2024-1) Florida named storm catastrophe bond to $200 million, while the notes are set to price within the initial price guidance range, Artemis has learned.

Aspen Insurance Holdings Limited is back in the catastrophe bond market for a second renewal of its international multi-peril catastrophe bond coverage from the capital markets, targeting sponsorship of a $150 million Kendall Re Ltd. (Series 2024-1) transaction.

Broking giant Aon is anticipating a “significant increase in demand” for property catastrophe reinsurance capacity at the upcoming mid-year renewals, with market conditions expected to continue developing favourably for buyers.

Investment manager Twelve Capital feels that the spread being taken when investing into catastrophe bonds compensates for the shorter-term risk being taken from the hurricane peril, noting that pricing of cat bonds is based on a longer-term view than just a single hurricane season.

The total yield of the catastrophe bond market in US dollars had declined to 12% by the end of March, down from a high of close to 16% in early January. But the signs are that the cat bond market yield may be stabilising, as demand and supply become more balanced, Plenum Investments believes.

Fidelis Syndicate 3123 at Lloyd’s is being launched with the support of third-party private capital sourced via Hampden Agencies and the initiative marks the first entry into the Lloyd’s market for MGU the Fidelis Partnership and CEO Richard Brindle’s return to the Lloyd’s market after 26 years.

Florida’s property insurer of last resort, Citizens Property Insurance Corporation, has said that its sees market conditions as especially positive in the capital markets, as it looks to progress its $5.5 billion reinsurance renewal for 2024.