CEA’s risk transfer returns to $9.6bn. Short-term future needs less certain
The California Earthquake Authority (CEA) increased the size of its reinsurance and catastrophe bond risk transfer program by around 4.4% as of the end of July 2021, to reach almost $9.6 billion, but in the short-term future growth of the program seems less certain due to rising exposure and the cost of coverage. That’s practically […]
Mexico struck by M7.0 quake. World Bank cat bond appears safe
A magnitude 7.0 earthquake has struck the Pacific coast of Mexico close to the tourist heavy area of Acapulco. At this stage, it appears the World Bank facilitated IBRD / FONDEN 2020 parametric catastrophe bond that provides the Mexican government with earthquake insurance protection is safe from loss, but it is hard to be certain on […]
Abu Dhabi Investment Authority expanded its ILS portfolio in 2020
The Abu Dhabi Investment Authority (ADIA), a sovereign wealth investment fund owned by the Emirate of Abu Dhabi and tasked with investing funds on behalf of the Government of the Emirate, expanded its insurance-linked securities (ILS) allocations last year, as it put an increasing emphasis on asset classes that offer relatively uncorrelated returns. ADIA first […]
ILS capital returns to previous record level of $97bn: Aon
Helped by a record period of catastrophe bond issuance in the first-half of 2021, alternative capital levels in reinsurance, largely in insurance-linked securities (ILS) formats, have now returned to their previous record year-end level of $97 billion, according to Aon. As of the half-way point of 2021, Aon’s Reinsurance Solutions counts total global reinsurance capital […]
CCRIF makes $2.4m parametric rainfall payout to Trinidad & Tobago
The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility), has made a US $2.4 million payout to Trinidad & Tobago after the Caribbean nations parametric excess rainfall insurance policy was triggered recently. Including this latest payout, the CCRIF’s parametric disaster insurance policies have now paid out 54 times, amounting to $245 million […]
Zenkyoren targets $500m Nakama Re cat bond out of Singapore
Zenkyoren, the Japanese National Mutual Insurance Federation of Agricultural Cooperatives and one of the world’s largest buyers of catastrophe reinsurance protection, is back in the insurance-linked securities (ILS) market, targeting a $500 million Nakama Re Pte. Ltd. (Series 2021-1) catastrophe bond issuance to transfer more of its earthquake exposure to the capital markets. This will be […]
Weather disasters drive US $ 3.64 trillion in losses in 50 years: WMO data
The high costs of weather disasters around the globe is truly laid bare by the latest data from the World Meteorological Organization (WMO), which estimates that weather, climate and water related disasters drove some US$ 3.64 trillion in losses over the last 50 years. The WMO’s latest Atlas of Mortality and Economic Losses from Weather, […]
ILS fund returns dented by European floods in July: ILS Advisers
The average return of the insurance-linked securities (ILS) fund market was dented by the European flooding in July 2021, with some funds focused on private ILS and collateralized reinsurance contracts suffering losses from the event. For the month of July 2021, the average ILS fund return was 0.20%, according to the Eurekahedge ILS Advisers Index. […]
Hurricane Ida insured wind & storm surge losses seen at up to $25bn by AIR
AIR Worldwide has estimated that insurance and reinsurance industry losses to onshore property resulting from the wind and storm surge impacts of Hurricane Ida will be between $17 billion and $25 billion. This estimate from AIR compares to CoreLogic’s industry loss range of $14 billion to $21 billion, and Karen Clark & Company’s re/insured loss estimate […]
NFIP cat bonds & reinsurance in focus as Ida’s remnants flood New York
The remnants of hurricane Ida have continued to drop torrential rain along its path north east and its slow pace and heavy downpours have now flooded parts of New York, all of which is heightening the risk posed to FEMA’s catastrophe bonds and reinsurance tower for the National Flood Insurance Program. As we explained yesterday […]