News

ILS Related

NEWS

Cherry picked selection of news on ILS, DRF, Reinsurance and other matters related to our activities. Updated on a weekly basis.

Secondary cat bond trading rises as $3.3bn May issuance drives portfolio changes

The volume of catastrophe bond notes traded on the secondary market rose again in May 2021, as insurance-linked securities (ILS) fund managers and cat bond investors adjusted their portfolios to accept the strong almost $3.3 billion of primary issuance seen during the month. May 2021 saw the highest level of primary issuance of catastrophe bonds so far in 2021,. The close to $3.3 billion of new cat bonds issued came from 9 144A cat bonds

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Tencent shows tech’s appetite to own access to reinsurance capital

Tencent Holdings Ltd., the Chinese multinational technology conglomerate, has provided one of the clearest examples of a tech giant wanting to own its access to reinsurance capital, a trend we’ve been anticipating would emerge. Our regular readers know we have a passion for technology, alongside risk transfer and use of efficient capital, believing that the efficiencies of advanced tech can be combined with efficient access to reinsurance capital, in order to provide better, more responsive

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参数化主权巨灾债券是“一带一路”的保险方式

通过与“一带一路”倡议相关的项目获得中国投资的中亚和东欧国家,应使用参数化主权巨灾债券来确保自身免受自然灾害的风险。 这是保险连结证券(ILS)和主权风险转移专家基里尔·萨符拉索夫(Kirill Savrassov)的观点。 萨夫拉索夫指出:《中国的“一带一路”倡议对中亚和东欧的全面保护方案提出了更高的要求》。 《中国将数百亿美元投入了该地区的基础设施建设,但实际上,其中连一个项目也没适当地投保物理伤害的险,尽管该地区面临着地震和其他自然灾害的高风险》。 在乌兹别克斯坦,哈萨克斯坦或塔吉克斯坦等国家,问题不是地震是否要发生,而是何时要发生,并且其毁灭力量多大。 自然灾害会破坏中国通过“一带一路”倡议帮助该地区发展的许多基础设施项目。如果建造后这种项目因地震而摧毁,那么东道国仍将欠缴中国的贷款,但是不会从基础设施投资中获取收益。 FULL PUBLICATION HERE

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Collateralized reinsurance renewals firmer than cat bonds or ILW’s

While the catastrophe bond market has been first to experience investor-demand and capacity driven softening, as spreads have increasingly tightened on primary issues over recent months, this isn’t yet reading across to the entire collateralized reinsurance market at the mid-year renewal season, we’re told. 2021 has seen a significant upwell in demand from investors for new catastrophe bond investments, which has driven strong execution and keen pricing to the benefit of sponsors, but resulted in

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Bill reintroduced calling for more NFIP flood reinsurance & cat bonds

A bill has been reintroduced to the United States Congress that again calls on lawmakers to codify that Federal Emergency Management Agency (FEMA), as the administrator of the U.S. National Flood Insurance Program (NFIP), sets a PML target each year and buys reinsurance and capital market risk transfer solutions accordingly. The Taxpayer Exposure Mitigation Act is one of four bills reintroduced by Congressman Rep. Blaine Luetkemeyer of Missouri and focuses solely on mandating use of

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Catastrophe bond & related ILS set for record $10bn+ H1 in 2021

Issuance of new catastrophe bonds and other related insurance-linked securities (ILS) we track here at Artemis is now set to break new ground for the first-half of 2021, with more than $10 billion of issuance now anticipated, according to our latest data on the market. The total issuance we’ve tracked so far this year that has already completed and settled, across property catastrophe bonds, other line-of-business cat bonds, private cat bonds and also mortgage insurance-linked securities (ILS),

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TWIA to double Alamo Re 2021 cat bond to $500m

The Texas Windstorm Insurance Association (TWIA) is now expected to double in size its new Alamo Re Ltd. (Series 2021-1) catastrophe bond transaction, which will now more than replace a soon to mature $400 million cat bond from 2018. As we were first to report this week, TWIA’s staff said at a meeting on Wednesday that the new cat bond could be upsized, depending on the investor reception to the deal and resulting market pricing. TWIA

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Industry-loss warranty (ILW) market softens YoY as capacity rises

Following conversations with a number of market sources, it seems that the market for industry-loss warranty (ILW) protection has softened year-on-year, following on the heels of the catastrophe bond market as capacity turns its attention to ILW’s in the run up to the renewals. Just the other day we explained that indicative pricing for industry-loss warranties (ILW’s) has jumped higher year-on-year, but it turns out this is just broker pricing sheets catching up to more

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Credit Suisse: Cushioning the impact of climate change with cat bonds.

More powerful hurricanes and increasing numbers of earthquakes – climate change is real. What does climate change mean for the alignment of investment portfolios? Investments in cat bonds offer institutional investors interesting opportunities to help shape the future. Climate change is jeopardizing the creditworthiness of government bonds “Over the past three decades, there has not been a single year when the average temperature in Switzerland was less than the average,” says Prof. David N. Bresch,

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