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Here's our latest Friday wrap-up of key news from the week.
Further information on the anticipated market losses from the devastating wildfires in California are now available.
We took another look at the write-downs of certain catastrophe bonds, concluding the mark-to-market impact is around the $200m level, but any actual losses to the cat bond market are expected to be meaningfully below that level, at this time.
More risk modeller loss estimates came in: Moody's RMS at $20bn-$30bn; Verisk at $28bn-$35bn; and KCC at around $28bn.
The APCIA joined calls to let cat bonds be issued by California to replenish FAIR Plan resources. While this may not actually turn out to be the cat bonds we know, we discussed how/why it perhaps should.
The cat bond market index fell -0.27% on the fires, leading Plenum Investments to suggest this implies the market anticipates a $30bn event.
Finally, we discussed the fact quota shares and sidecars will be a loss vector for certain third-party investors. But, while we said retro XoL may not take a significant share, sources reached out and told us that reinsurers share of the fire losses may be higher than the data we used implied, suggesting more retro might attach.
In the cat bond market this week Swiss Re lifted the target for its new Matterhorn deal, while Hannover Re also sought to upsize its 3264 Re deal.
Inigo priced its new Montoya Re for an upsized $115m, while Aetna secured what is its largest Vitality Re health ILS yet.
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In other news, Fermat Capital Management surpassed the $10bn of ILS assets under management milestone.
We looked at how the cat bond sponsor base has expanded, with around 40 new sponsors added to our leaderboard in just over three years.
Lloyd's reached $1.92bn of capital deployed through its London Bridge ILS platform.
A definitive prospectus was filed for the awaited Brookmont cat bond ETF, while its ticker symbol was set as ILS.
We reported on comments from Jefferies analysts that a growing ILS market will need to keep expanding its horizons, to offer broader risk management and diversification.
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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