Catastrophe bonds and insurance-linked securities news

Citizens Property Insurance Corporation is seeking what could be its biggest catastrophe bond ever, with an initial target of some $950 million of notes offered via a dual-series Everglades Re II Ltd. (Series 2024-1 & 2024-2) issuance, but with both two and three year note series available it looks like market appetite will decide the […]

In a further sign that catastrophe bond pricing could be at or approaching the bottom, for now at least, while Aspen has significantly increased the target size for its new Kendall Re Ltd. (Series 2024-1) transaction to as much as $375 million, the pricing for both tranches of notes has risen relatively significantly as well.

Louisiana Citizens Property Insurance Corporation has now secured the upsized $275 million of collateralized named storm reinsurance from its new Bayou Re Ltd. (Series 2024-1) catastrophe bond as pricing was finalised at the low-end of reduced guidance, with the deal becoming its largest cat bond to-date.

US primary insurer Allstate added $343 million of catastrophe losses in the month of March, taking its Q1 2024 cat loss total to $731 million, suggesting further erosion of the retention under the firm’s aggregate reinsurance cat bond coverage, although the data suggests that the tranches of notes do appear safe from actual losses.

Having recently spent time meeting with the insurance-linked securities (ILS) market at the SIFMA annual conference in March and caught up with other market participants since, we come away with a feeling that the ILS market remains keenly focused on holding onto gains made in recent years, with no ambition to revert back to the […]

The issuance of IBRD CAR Mexico 2024, the Government of Mexico’s $420 million Mexico earthquake and Atlantic coast named storm catastrophe bond, “is a fundamental part of the federal strategy for Financial Management of Disaster Risks”, according to Héctor Santana Suárez, Head of Insurance, Pensions and Social Security in the Ministry of Finance of México.

Zenkyoren, the Japanese National Mutual Insurance Federation of Agricultural Cooperatives, has now secured its targeted $150 million of reinsurance from the new Nakama Re Pte. Ltd. (Series 2024-1) catastrophe bond, with the notes spread now priced within the initial guidance.

Amid high demand for capacity in the primary and reinsurance markets, analysis by Solidum Partners suggests the cyber cat bond segment will continue to grow in importance in the future and that market dynamics “should ensure adequate risk compensation in the medium term”.

The catastrophe bond market is expected to generate investors as much as $17.61 billion in cash through 2024, from a combination of coupon payments and maturities, Aon Securities has estimated, which alongside inflows should be ample to help in absorbing what could be another record year of issuance.

Analysts at Goldman Sachs have noted that 2024 is going to be a year where they will be focusing on the potential for inflows of alternative capital or new entrant formation to change the dynamic across reinsurance and specialty insurance markets.