World Bank: New Financing Tools Receive Major Funding Boost
WASHINGTON, April 19, 2024— New financial instruments designed to boost lending capacity and enable the World Bank Group to take on more risk for shared global challenges have received a significant endorsement. A set of 11 countries announced commitments today for the Portfolio Guarantee Platform, hybrid capital mechanism, and new Livable Planet Fund totaling $11 […]
World Bank Issues $420 Million in Catastrophe Bonds for Renewed Disaster Risk Protection for Mexico
Washington D.C., April 17, 2024 – The World Bank (International Bank for Reconstruction and Development, or IBRD, AAA/Aaa), issued three catastrophe (cat) bonds that finance $420 million of insurance coverage for the Government of Mexico against named storm events along the Atlantic coast of Mexico and earthquake events. The cat bonds replace and increase by $60 […]
New cat bond a “fundamental part” of Mexico’s disaster risk management: Suárez, Ministry of Finance
The issuance of IBRD CAR Mexico 2024, the Government of Mexico’s $420 million Mexico earthquake and Atlantic coast named storm catastrophe bond, “is a fundamental part of the federal strategy for Financial Management of Disaster Risks”, according to Héctor Santana Suárez, Head of Insurance, Pensions and Social Security in the Ministry of Finance of México. The […]
Hong Kong: Protection gaps, Chinese municipalities a key focus for ILS ambitions
After its government expressed its desire to attract more insurance-linked securities (ILS) sponsors to the Hong Kong Special Administrative Region, highlighting a commitment to develop its ILS market, executives from the Insurance Authority have made filling protection gaps a key focus of its ILS ambition. This will include not just attracting international insurance and reinsurance […]
Hong Kong: Protection gaps, Chinese municipalities a key focus for ILS ambitions
After its government expressed its desire to attract more insurance-linked securities (ILS) sponsors to the Hong Kong Special Administrative Region, highlighting a commitment to develop its ILS market, executives from the Insurance Authority have made filling protection gaps a key focus of its ILS ambition. This will include not just attracting international insurance and reinsurance […]
Mexico to add $125m of Pacific named storm cover to World Bank cat bond
As anticipated, the Government of Mexico has returned to secure Pacific named storm protection from another new tranche of World Bank and IBRD facilitated catastrophe bond notes, as the country looks to finalise its latest capital markets source of parametric disaster insurance protection. In recent week’s, Mexico has secured a $420 million source of protection against […]
California to expand use of catastrophe models to wildfire, terrorism, flood: Lara
As part of its goal to ward off a developing insurance crisis in California that has seen major companies pull-back on underwriting property insurance there, or exit the state entirely, Insurance Commissioner Ricardo Lara has announced regulation to allow for an expanded use of catastrophe models to help insurers operate there more sustainably. “Currently, the […]
CEA’s reinsurance tower reached $9.1bn pre-1/1, risk transfer costs up 15%
The California Earthquake Authority (CEA) entered the January reinsurance renewals with almost one billion dollars more in risk transfer than a year earlier, as the group reached December 31st 2023 with $9.1 billion of protection in-force. A year earlier, the CEA’s reinsurance tower had shrunk to around $8.2 billion after the January 2023 renewal, significantly down […]
Texas Windstorm (TWIA) targets $600m Alamo Re catastrophe bond
The Texas Windstorm Insurance Association (TWIA), the residual market property insurer for the State of Texas, has returned to the catastrophe bond market seeking to place a large $600 million Alamo Re Ltd. (Series 2024-1) issuance as it looks to build-out its reinsurance for the years ahead with the help of the capital markets, Artemis can […]
Mexico expected to renew Pacific coast hurricane cat bond after Otis resolution
We reported earlier this week that the Government of Mexico is back in the catastrophe bond market with a new World Bank facilitated IBRD CAR Mexico 2024 parametric catastrophe bond. That deal is missing one of its usual components, a Pacific hurricane tranche, but sources tell us to expect one, once any recovery from hurricane Otis […]