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 […]
TWIA returns for $250m+ Alamo Re cat bond renewal for 2021
The Texas Windstorm Insurance Association (TWIA) has returned to the catastrophe bond market with a $250 million or larger Alamo Re Ltd. (Series 2021-1) transaction, which will go at least some of the way to renewing a soon to mature $400 million cat bond from 2018. For 2021, the Texas Windstorm Insurance Association (TWIA) has returned […]
Florida ILW price indications up as much as 50% year-on-year
With the Florida reinsurance renewals fast approaching, it’s interesting to learn that indicative pricing for industry-loss warranty (ILW) protection covering hurricanes affecting the state is up significantly year-on-year, but actual market pricing may be flat or even down. Please read our update at the foot of this article. The market for typically retrocessional reinsurance protection […]
Surge in cat bond market set to continue in 2021
The catastrophe bond market saw robust activity last year as new sponsors and tightening retrocessional reinsurance capacity helped buoy the sector, and the trend is expected to continue. Both the 2020 top line issuance of $11 billion of property cat bond limit placed and the fourth-quarter total of $3.7 billion were records, according to a […]
ILS is a growing part of the ESG mosaic, say industry experts
As responsible and sustainable investing continues to gain traction, the insurance-linked securities (ILS) asset class is expected to play an increasing role, but it’s important that the sector tells its own environmental, social and governance (ESG) story. This is according to ILS and reinsurance industry experts speaking recently at the virtually held SIFMA Insurance and […]
Cat bond to narrow Jamaica’s natural disaster financing gap: World Bank
Work continues on the first catastrophe bond for Jamaica and the World Bank has highlighted how the soon to be launched transaction will help to narrow the Caribbean nations natural disaster financing gap. As yet, the World Bank’s catastrophe bond for Jamaica has not come to market, but it is expected within the coming two […]
Hong Kong reveals insurance-linked securities (ILS) grant details
Hong Kong’s Insurance Authority (IA), the independent insurance and reinsurance regulator for the Hong Kong Special Administrative Region (HK SAR) of the People’s Republic of China, has now published initial details of its insurance-linked securities (ILS) grant scheme. Back in February of this year, Financial Secretary of Hong Kong Paul Chan revealed plans for a […]
Education, liquidity, more perils to drive retail investor interest in ILS: SIFMA
Greater education around the insurance-linked securities (ILS) asset class, coupled with the development of a secondary market and the expansion into new perils, will help make ILS fund participation more attractive for sophisticated retail investors, according to industry experts. While institutional investors such as pension funds are a dominant force in the ILS fund space, […]
Singapore to reduce investment reporting & disclosure rules for ILS issuers
In aiming to make its insurance-linked securities (ILS) regulatory environment as appealing as possible, the government of Singapore is listening to market participants and enhancing rules surrounding ILS and catastrophe bond issuance structures, to reduce friction for sponsors and other parties involved in transactions. Ever since the start of Singapore’s journey into insurance-linked securities (ILS), […]
World Bank CAT DDO pays out $20m for La Soufrière volcanic eruption
The Governments of Saint Vincent and the Grenadines have received $20 million in disaster risk financing support from the World Bank to aid their recovery from the recent eruption of the La Soufrière volcano, after a catastrophe contingent line of credit was triggered. The eruption of the La Soufrière volcano on Saint Vincent has triggered […]