Reinsurance News
catastrophe bonds
Catastrophe bonds are an insurance-linked securities (ILS) instrument, where insurance and reinsurance related risks are transferred to the capital markets in Rule 144A securitized formats.
Read our catastrophe bond news and analysis below.
Universal completes combined 2023-24 reinsurance program for subsidiaries
31st May 2023
Universal Insurance Holdings, Inc. has announced the completion of its combined 2023-2024 reinsurance program, effective June 1, 2023, by Universal Property & Casualty Insurance Company and American Platinum Property and Casualty Insurance Company, its wholly-owned insurance company subsidiaries. UPCIC and APPCIC set the top of their combined ... Read the full article
SCOR successfully sponsors new Atlas Capital catastrophe bond
30th May 2023
Global reinsurance company SCOR has successfully sponsored a new catastrophe bond, Atlas Capital DAC Series 2023-1, which will provide the firm with multi-year risk transfer capacity of $75 million to protect itself against named storms in the U.S. and earthquakes in the U.S. and Canada, as well as European windstorms. Atlas ... Read the full article
NFIP claims paid after Hurricane Ian exceeded $3.4bn in March
4th May 2023
By the end of March 2023, National Flood Insurance Program (NFIP) claims paid after Hurricane Ian had surpassed $3.4 billion, with more than 46,000 NFIP flood insurance claims received. As we wrote previously, by mid-January 2023, the NFIP had paid $2.2 billion in claims for Hurricane Ian, the powerful Category 5 ... Read the full article
Kin secures $100m of Florida named storm reinsurance via second cat bond
6th April 2023
Kin Insurance, a direct-to-consumer home insurance company, closed a $100 million private placement catastrophe bond transaction, bringing Hestia Re Ltd.’s total outstanding limit to $275 million. Kin Interinsurance Network has secured a new reinsurance agreement with Hestia Re., a newly established special purpose insurer in Bermuda, that will cover indemnity-based losses ... Read the full article
Tremor’s new cat bond issuance platform targets increased transparency and efficiency
30th March 2023
Tremor Technologies, the reinsurance pricing and placing platform, has announced the launch of Tremor Issuer, an online catastrophe bond issuance platform powered by the firm's Panorama marketplace tech. The new platform can be accessed online by investors, issuers, bankers, and brokers, and is offered via the company's new regulated subsidiary, Tremor ... Read the full article
ILS at crossroads as capital supply to remain low: AM Best
23rd March 2023
Analysts at AM Best have warned that the insurance-linked securities (ILS) market finds itself “at a crossroads” following several years of heightened catastrophe losses, and with the supply of capital set to remain low while investors re-assess the class. The rating agency notes that losses stemming from Hurricane Ian, after years ... Read the full article
World Bank cat bond & swap to provide $630m cover for Chile quakes
17th March 2023
The International Bank for Reconstruction and Development (IBRD), has priced a joint catastrophe bond and swap transaction that provides a total of $630 million of earthquake insurance coverage to the Government of Chile. The deal by the lending arm of the World Bank consists of $350 million of protection from the ... Read the full article
Florida Citizens using industry-loss cat bond coverage as it prepares for merging of accounts
16th March 2023
Florida's Citizens Property Insurance Corporation, the property insurer of last resort for the Florida market, has returned to the capital markets for a new, multi-year industry loss catastrophe bond transaction, as it prepares to merge its three accounts. The special legislative session in December 2022 saw the passing of Senate Bill ... Read the full article
FEMA secures another $275m of flood reinsurance for NFIP
9th March 2023
The US Federal Emergency Management Agency (FEMA) has returned to the capital markets to secure another $275 million of reinsurance protection for the National Flood Insurance Program (NFIP). The FloodSmart Re Ltd. (Series 2023-1) deal marks the sixth time that FEMA has utilised Hannover Re to access reinsurance capital via a ... Read the full article
Ariel Re obtains $125m of cover with third Titania Re cat bond
27th February 2023
Global reinsurer Ariel Re has announced the successful completion of its third catastrophe bond, Titania Re III, which provides it with $125 million of collateralized reinsurance cover for named storms and earthquakes. The bond applies to these perils in all US States, Puerto Rico, the US Virgin Islands and Canada with ... Read the full article
SageSure and SURE close upsized $355m cat bond
22nd February 2023
Catastrophe-exposed property insurance provider SageSure and SureChoice Underwriters Reciprocal Exchange (SURE), a policyholder-owned coastal insurer, have announced the close of a $355 million Rule 144A catastrophe bond. At this size, the deal is 78% larger than the initial $200 million transaction target and represents the largest cat bond issuance to date ... Read the full article
Cat bond issuance to increase as year progresses: DBRS Morningstar
16th February 2023
Despite anticipating that catastrophe bond issuance volume may be muted in the short term due to the quick rise in interest rates, DBRS Morningstar expects that activity will pick up in the second half of 2023 and beyond as the rate environment stabilises and demand for catastrophe protection grows. The rating ... Read the full article
TWIA confirms discussions are underway with reinsurers for 2023 renewal
15th February 2023
The Texas Windstorm Insurance Association (TWIA) has commenced discussions with its reinsurance partners as it looks to secure up to $2.92 billion in coverage for the upcoming storm season, across traditional reinsurance and catastrophe bonds. During a board meeting held yesterday, Jim Murphy, Chief Actuary, said that TWIA's "begun setting up ... Read the full article
ILS demand to be elevated throughout 2023: Aon
25th January 2023
Analysts at Aon have said they expect demand for all forms of alternative capital to remain elevated throughout 2023 as insurers and reinsurers look to mitigate both macro-economic and reinsurance market challenges. In a new report on January reinsurance market dynamics, the broker noted that ILS capital has become an “essential ... Read the full article
CyberCube model used for first cyber cat bond
11th January 2023
Cyber risk analytics provider CyberCube has confirmed that it acted as a modelling agent for the first private cyber catastrophe bond. CyberCube’s Portfolio Manager was utilized as part of the creation of a $45 million insurance-linked securities (ILS) transaction by Beazley, as previously reported by our sister publication, Artemis. Portfolio Manager ... Read the full article
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