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Here's our latest Friday wrap-up of key news from the week.
This week, devastating wildfires in California have dominated the news. Our latest anlysis explains that more than 10k structures are thought destroyed or badly damaged, while insurance market loss estimates range $10bn - $20bn, although some caution it could rise even higher.
The main exposure to the wildfires for the cat bond market is in aggregate structures, on which Icosa Investments CEO warned could face considerable erosion.
Both cat bond fund managers Plenum Investments and Twelve Capital also warned of the agg erosion potential of the fires, but also said direct losses may not occur or be significant.
In the catastrophe bond market, we revealed a number of new transactions that began marketing this week.
Inigo has returned for a new Montoya Re cat bond, Hannover Re is back for more agg retro with a new 3264 Re, Swiss Re is also seeking retrocession from a new Matterhorn Re deal, Aetna returned for its latest and largest Vitality Re, and GeoVera has returned for its latest and largest Veraison Re.
In addition, TD Insurance secured its debut cat bond at reduced pricing, while QBE called its recently settled Bridge Street Re deal an enabler.
UCITS cat bond funds delivered an average return of 13.62% for 2024, according to the latest data from Plenum Investments.
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Hedge fund merketer and consultant Agecroft said that the ILS sector is a segment it expects to see substantial inflows into in 2025.
Also this week, Aon reported its latest figures for alternative capital, which show growth through the first nine-months of 2024.
Its Aon Securities unit said that a vibrant ILS market is expected, with ample deal flow in 2025.
High-demand for catastrophe bond investments has compressed risk spreads and the overall yield of the market fell back to single digits at 9.94% by the end of December 2024.
CCR Re renewed its 157 Re reinsurance sidecar for 2025, while implementing a new feature to assist in collateral reuse.
Ark has renewed its Outrigger Re sidecar for 2025, albeit at a slightly smaller size than last year.
Munich Re completed its Eden sidecar renewal, at the same $150m size as last year.
HP Re assumed a portfolio of prior underwriting year risks from ILS manager Elementum Advisors.
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.
If you prefer to listen, subscribe to our podcast series for audio interviews & additional special episodes.
We'll be back next week with more regular coverage.
We hope you have a safe & relaxing weekend.
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