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LA Citizens says reinsurance & cat bonds to take majority of $461m Ida loss

Louisiana Citizens Property Insurance Corporation has reported an estimated loss from hurricane Ida of around $461 million, but thanks to its low retention on its reinsurance tower and its catastrophe bonds, the residual market insurer will only retain $35 million. At a Board meeting held last week, Louisiana Citizens staff updated read the full article →

The biggest catastrophe bond day in history on TRACE?

Yesterday, October 5th 2021, saw what appears to be the most significant day of catastrophe bond names "trading" and being registered on the FINRA Trade Reporting and Compliance Engine (TRACE) ever, with somewhere around 114 individual names, or tranches, of cat bond notes recorded as seeing activity. The U.S. Financial Industry read the full article →

LA Citizens occurrence cat bonds marked down again on Ida loss expectation

Two outstanding per-occurrence catastrophe bond tranches sponsored by Louisiana Citizens Property Insurance Corporation have been marked down much further on some broker pricing sheets in the last week, with secondary market bid pricing now implying a market expectation of a significant loss of principal. Secondary cat bond broker pricing sheets show read the full article →

Catastrophe bonds marked down on hurricane Ida threat

A number of catastrophe bonds have been marked down in end of month secondary market pricing sheets, with some of the anticipated names suffering declines of between 25% and 35% in value. After hurricane Ida's devastating landfall with 150 mph winds in Louisiana on Sunday it was always anticipated that there read the full article →

Secondary cat bond trading rises as $3.3bn May issuance drives portfolio changes

The volume of catastrophe bond notes traded on the secondary market rose again in May 2021, as insurance-linked securities (ILS) fund managers and cat bond investors adjusted their portfolios to accept the strong almost $3.3 billion of primary issuance seen during the month. May 2021 saw the highest level of primary read the full article →

Hardening cat bond market an opportunity for investors: Ruoff, Schroder Secquaero

The secondary market for catastrophe bond trading has offered some good opportunities in recent times, but with the focus now back on primary issuance, it’s an interesting moment for investors, says Stephan Ruoff of Schroder Secquaero. Ruoff, the Deputy Head of insurance-linked securities (ILS) asset manager Schroder Secquaero, a specialist division read the full article →

Heritage appears to get more payouts from Citrus Re cat bond series

Heritage Insurance Holdings, Inc., the Florida focused property and casualty insurer, has benefited from more reinsurance recoveries under its Citrus Re catastrophe bond series of deals, with more tranches seeing principal reductions, one of which has now been allowed to mature. Heritage has been making reinsurance recoveries under some of its read the full article →

Cat bonds demonstrate positive diversification characteristics: Plenum

The catastrophe bond market has been demonstrating its "positive diversification characteristics" during the ongoing Covid-19 coronavirus pandemic, according to specialist ILS fund manager Plenum Investments. The catastrophe bond asset class is one of the best defensive asset classes in these times of financial market volatility and great uncertainty, with the cat read the full article →

Cat bond liquidity evident, as trading rises on Covid-19 volatility

The catastrophe bond market is once again demonstrating its financial liquidity, as secondary trading volumes have risen driven by certain investors looking to sell their positions at a time when volatility in the broader financial markets is extremely high due to the coronavirus pandemic. Catastrophe bonds have demonstrated their liquidity benefits read the full article →

Heritage’s Citrus Re 2017-1 A cat bond notes partially redeemed, $36.7m extended

One of the loss-exposed tranches of Florida focused property and casualty insurer Heritage Insurance Holdings, Inc’s Citrus Re Ltd. catastrophe bonds has been partially redeemed by investors, with now $36.7 million of collateral from the originally $125 million tranche still retained by the sponsor and its maturity further extended. The tranche read the full article →