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Here's our latest Friday wrap-up of key news from the week.
This week the implications of hurricane Milton for the catastrophe bond market became clearer. The Swiss Re cat bond Index bounced back at its latest pricing, leaving it just -0.30% since Milton.
Meanwhile, Plenum Investments index of UCITS catastrophe bond funds was only -0.42% at the first pricing post-Milton landfall.
Consultancy Lane Financial also analysed cat bond secondary pricing and concluded the mark-to-market implied loss from hurricanes Helene and Milton combined is around $380m.
Also of note, the US mutual cat bond and interval ILS funds largely marked an additional recovery at the end of last week.
Icosa Investments highlighted that cat bond pricing has been quite different after Milton, than was seen with hurricane Ian in 2022.
While Nils Rode, CIO of Schroders Capital, said the hurricanes will contribute to keeping ILS spreads historically high.
In other news this week, the cat bond market pipeline continues to build, with a new Orange Capital transaction from NN Group, and the latest Residential Re from USAA both in the market.
Prologis priced its new Logistics Re cat bond this week as well, while the parametric Acorn Re deal may upsize while its guidance was lowered.
Also on the storms, early loss estimates were announced by some underwriters, with Munich Re expecting around €500 million in losses from hurricane Helene and significant additional claims expenditure from hurricane Milton.
Heritage Insurance said losses from Milton could hit the third layer of its reinsurance tower.
American Coastal estimated that its losses from the storm would come in below where its cat bond coverage attaches.
Universal said that after Helene, its reinsurance will have a lower retention for a subsequent event, so will insulate it better from Milton.
Meanwhile, Moody's Ratings said that hurricane losses from recent weeks will help stabilize property cat pricing at the renewals.
We also looked at the catastrophe bond issuance run-rate so far this year and highlighted how you can analyse this using our interactive charts.
Demonstrating the health of the cat bond market, UCITS funds now have a combined $13bn in assets between them for the first time.
Finally, if you haven't seen them, Artemis has a wealth of data and analytics on the catastrophe bond and broader ILS market. View our charts and Deal Directory.
Catch up on our video interviews with ILS market leaders here.
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We'll be back next week with more regular coverage.
We hope you have a safe & relaxing weekend.
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