Here's our latest Friday wrap-up of key news from the week.
Catastrophe bond market activity remains brisk and we reported on the first deal for UK flood risk pool Flood Re launching to investors.
The North Carolina Insurance Underwriting Association (NCIUA) returned with a $350m Cape Lookout Re deal.
The CEA secured its upsized target for $400m of reinsurance from its new Ursa Re deal.
While SageSure secured the largest cat bond yet for any of its underwriting entities, as the Gateway Re deal priced at $520m in size.
In addition, Hiscox targeted lower pricing for its new Ocelot Re deal, while Security First is looking to upsize its First Coast Re issuance.
Also in cat bonds, we reported that the market is already on-track to achieve a new first-quarter issuance record in 2025.
We held our ILS NYC 2025 conference in New York last Friday with over 415 attending and in our review of the event explained that discussions highlighted resurgent investor interest in ILS and an expanding ILS investment opportunity set.
California wildfire news continues, as the Topanga Re cat bond from Farmers continued to recover its price, indicating the market sees a declining risk of losses.
Travelers estimates $1.7bn in pre-tax losses from the LA Wildfires, while Mercury forecast a gross loss of up to $2bn but also noted that subrogation recoveries will be aggressively pursued.
Howden Re said both traditional reinsurance and capital markets will be needed to support California's insurance market after the fires.
In other news this week, Twelve Securis has been established with $8.5 billion of AUM after the merger of Twelve Capital and Securis Investment Partners has now completed.
Mereo Insurance finalised a $700m+ capital raise for its equity balance-sheet and deployed around $250m in capacity from its ILS fund at the January reinsurance renewals.
AIG CEO Peter Zaffino has warned that a potential $200 billion annual catastrophe loss year in 2025 could "recalibrate the entire industry."
FEMA updated its estimate for NFIP losses from hurricane Helene, stretching the top-end of the range to now as much as $7.4 billion.
Man Group said its outlook for ILS remains positive as the industry begins 2025, despite some distortion seen in industry index deals following strong investor interest.
K2 Advisors noted that meaningful catastrophe bond issuance is required to absorb cash in the marketplace.
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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