winter storm Uri

Catastrophe bond losses continue to affect investors in the $300 million Sanders Re II 2019-1 cat bond transaction sponsored by US primary insurance giant Allstate, as loss creep from US winter storm Uri and Texas freeze continued to erode the notes remaining principal in the second-quarter.

US primary insurance carrier Allstate reported another $195 million of pre-tax catastrophe losses for the month of June, including some loss creep on prior period events, taking its pre-tax total for the second-quarter of the year to around $952 million.

The return of catastrophe bond and insurance-linked securities (ILS) funds as a group was above average in May 2021, at 0.58%, and even if you subtract the extraordinary boost one fund got due to what is expected to have been wildfire subrogation recoveries, the average ILS fund return was still better than the long-term mean.

US primary insurance carrier Allstate has reported $213 million of estimated pre-tax catastrophe losses for the month of May 2021, which takes the insurers second-quarter total to $757 million before tax.

Global insurance and reinsurance market losses caused by natural catastrophes and severe weather events are still running some 17% above the average for this time of the year, even after a much quieter month in May 2021.

The insurance-linked securities (ILS) fund market delivered a very slightly below-average 0.24% return for April 2021, as the effects of severe weather events in the United States caused impacts to some aggregate contracts during the period.

US primary insurance carrier Allstate has reported $544 million of net catastrophe losses, largely caused by April’s severe US convective weather and hail storms, as well as some loss creep on previous events.

Despite April being a quieter month globally for insurance and reinsurance market losses caused by natural catastrophes and severe weather, analysts at investment bank Jefferies still estimate that claims year-to-date are running approximately 30% above average.

The overall insurance-linked securities (ILS) fund market averaged a 0.22% return for March 2021, which was above average for the month but seemingly impacted by losses booked by a number of collateralized reinsurance and retrocession focused funds.

US primary insurance giant Allstate has reported that its losses from the first-quarter winter storms and freezing weather have now enabled it to recover $195 million from the reinsurance provided by its Sanders Re II 2019-1 cat bond.