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.
Beazley confirms placement of market’s first cyber cat bond
9th January 2023
Specialist re/insurer Beazley has now confirmed that it has sponsored a ground-breaking cyber catastrophe bond transaction, designed to cover remote probability catastrophic and systemic cyber events, with the potential for more deals later in 2023 and beyond. It was reported earlier by the Financial Times that Beazley, the London headquartered ... Read the full article
Beazley launches $45 million cyber catastrophe bond
9th January 2023
Specialist insurer and reinsurer Beazley has launched a $45 million cyber catastrophe bond, providing the carrier with protection against "remote probability catastrophe and systemic events", opening up a much larger source of capital for the firm, according to a report by the Financial Times. It's been described as the first cyber ... Read the full article
Cat bond investors secure higher pricing as Q4 issuance hits $1.6bn: Report
5th January 2023
In the final quarter of 2022, catastrophe bond and related insurance-linked securities (ILS) issuance fell when compared with the prior year quarter, but remained robust at $1.6 billion, helping the outstanding market hit a year-end high of $37.9 billion, according to Artemis. Our ILS-focused sister ... Read the full article
Great Wall Re cat bond issued in Hong Kong for PICC P&C
3rd January 2023
Chinese domestic insurer PICC Property and Casualty Company Limited has sponsored a $32.5 million Great Wall Re Limited deal to provide it with earthquake reinsurance in the third catastrophe bond issuance to be domiciled in and issued out ... Read the full article
Inigo prices its second catastrophe bond of the year
15th December 2022
Inigo has priced its second catastrophe bond of the year, securing the company a further $110 million of capital markets backed reinsurance protection. A statement from the firm said Montoya Re II closed this week and is a $110m transaction covering North American named storms and earthquakes. It responds on an ... Read the full article
Citizens increases Ian loss estimate to $3.8bn, expects 37% to be ceded to reinsurers & FHCF
15th November 2022
Florida’s residual market insurer, Citizens Property Insurance Corporation, has released a revised projection of $3.8 billion of direct losses and loss adjustment expenses from Hurricane Ian, of which it expects $1.4 billion to be ceded to private reinsurers and the Florida Hurricane Catastrophe Fund (FHCF). The newly announced $3.8 billion total ... Read the full article
9M catastrophe bond issuance above-average: Report
5th October 2022
Catastrophe bond and related insurance-linked securities (ILS) issuance was particularly quiet in the third-quarter of 2022, but combined with a solid first-half of the year for the market, helped issuance for the nine-month period come in above-average at more than $8.9 billion, reports Artemis. The Q3 2022 ... Read the full article
US insurers have minimal investments in ILS and cat bonds, says AM Best
16th September 2022
According to AM Best, the global insurance-linked securities (ILS) market remains bogged with prior catastrophe losses as the overall performance of funds deteriorates, despite another year of record cat bond issuance. In 2021, issuance in the 144a cat bond market reached a record of approximately $12.5bn, says Best, exceeding the previous ... Read the full article
Climate change stimulates cat bond development in Asia: Fitch
9th September 2022
Analysts at Fitch Ratings have suggested the catastrophe bond market will continue to develop given a rise in catastrophic events amid climate change. The demand for bonds issued via private placement by ILS is rising, suggests Fitch, with regular capital infusions to the reinsurance sector and ISLs in Hong Kong. Peak Re ... Read the full article
Asian reinsurers to focus on discipline and price amid inflation & climate change: Fitch
5th September 2022
In Asia, persistent inflation is a threat to the profitability of the reinsurance market and is happening at a time of elevated weather-related losses for carriers, a trend Fitch warns could accelerate as a result of the changing climate. Analysts at ratings agency Fitch believe that prolonged high inflation could lift ... Read the full article
Swiss Re launches catastrophe bond focused investment adviser
4th August 2022
Global reinsurance giant Swiss Re has enhanced its insurance-linked securities (ILS) offering with the launch of Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC), a new investment advisory entity with a particular focus on catastrophe bonds. According to Swiss Re, its new and wholly owned subsidiary, SRILIAC, adopts an investment strategy that ... Read the full article
Travelers upsizes northeast catastrophe reinsurance by $100m at July renewal
21st July 2022
US primary insurance carrier Travelers has grown the size of its main Northeast Property Catastrophe Excess-of-Loss Reinsurance coverage by $100 million at the July 1st, 2022, reinsurance renewals, as the firm saw price increases aligned with those seen on its inwards book. For 2022, the Northeast Property Catastrophe reinsurance agreement sees ... Read the full article
Disaster Risk Financing could help to mitigate climate risk in Africa
13th July 2022
Only three percent of losses caused by drought, floods and tropical cyclones have been insured on the African continent. This emerged at a recent DZ BANK Capital Markets Conference held in Berlin. Insured losses on the African continent are close to 97 percent, which means, at best, ... Read the full article
“Demand for catastrophe bonds outpacing industry’s ability to meet them” – Aon
8th July 2022
Aon’s latest Reinsurance Market Dynamics: June and July Reinsurance Renewals says that the current demand for catastrophe bonds is outpacing the ability of the industry to supply them. According to the report, the current situation has arisen because insurers and reinsurers have turned increasingly to alternative capital markets to supplement traditional ... Read the full article
CEA’s risk transfer program declines to roughly $9.3bn
6th July 2022
The California Earthquake Authority (CEA) has seen a roughly $600 million dip in its total capacity from the end of 2021, as the entity's risk transfer program declines in size to just shy of $9.3 billion amid a firming reinsurance market. Total capacity, as of the end of May 2022, stood ... Read the full article
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