Demonstrated value of ILS during COVID to drive capital to the market: Aon

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The fact insurance-linked securities (ILS) such as catastrophe bonds and other reinsurance-linked assets clearly demonstrated their value during the height of the COVID-19 pandemic financial market volatility, is likely to draw investors to the sector, Aon Securities believes.

The most negative effect of the pandemic on catastrophe bonds was a brief pause in issuance, for around a month at the height of the global lockdowns in late March into April.

Aside from that, the cat bond market came under selling pressure, as investors needed to free up capital from performant assets that hadn’t lost their value at a time when equity and debt markets were in turmoil.

Alphabet (Google) returns for second cat bond to top up quake cover

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Alphabet, Inc., the holding company for tech giant Google and its units, has returned to the catastrophe bond market in very quick succession to add a second $95 million Phoenician Re Ltd. (Series 2020-2) transaction, clearly pleased with the pricing and execution of its first.

Alphabet had only priced its first catastrophe bond issuance, the Phoenician Re Ltd. (Series 2020-1)  transaction in the last week, securing the targeted $237.5 million of California earthquake insurance protection it had sought at targeted pricing.

That first cat bond settles early next week, but we understand that Alphabet and its Google operations are so satisfied with the process of securing insurance coverage from the capital markets through a catastrophe bond that they have come back for more.

Turker Re launches Capital Solutions unit & Turkey quake ILW product

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Turker Re, a Lloyd’s broker with a significant insurance and reinsurance broking footprint in the Turkish marketplace and surrounding region, has launched a new product offering of a Turkey earthquake industry loss warranty (ILW) as the first under a new Capital Solutions unit.

The broker hopes to create a new market category for insurance, reinsurance and insurance-linked securities (ILS) companies, offering the Turkish earthquake ILW as an effective hedging tool for any companies with property exposure in the region.

Turker Re is aiming to cement a role for itself in helping the Turkey, MENA and Eastern Europe regions access the capital markets and insurance-linked securities (ILS) investors for reinsurance capacity and has launched a Turker Capital Solutions division, to focus on this opportunity.

Hamilton looks to Singapore for first full cat bond with Easton Re Pte. Ltd.

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Hamilton, the Bermuda based insurance and reinsurance holding company, is entering the catastrophe bond market for its first full, syndicated Rule 144a transaction and Singapore is to be the domicile of choice, after the company registered Easton Re Pte. Ltd.  as an issuer.

Our sources told us that Hamilton would likely return to the catastrophe bond market towards the end of this year, as it seeks out third-party capitalised retrocessional reinsurance protection for the book underwritten by its reinsurer Hamilton Re.

Hamilton Re has sponsored a private catastrophe bond issuance before, using reinsurance broker Guy Carpenter’s cat bond issuance vehicle Cerulean Re SAC Ltd.