Life-threatening storm surge is already occurring along the coastline from Alabama to the Florida Panhandle, including Pensacola Bay and southern portions of Mobile Bay.
The initiative, which has been evaluated by ESG ratings and research provider Sustainalytics,
is part of Trieste-based Generali’s sustainability strategy.
The Floridian carrier has returned to the cat bond market for a third time, adding wildfire, earthquake and winter storm perils to its latest transaction.
ILS broker-dealers’ forecast cat bond issuance will range from $8bn to $11bn this year, reclaiming ground lost in 2019 when annual volumes plummeted more than 40 percent year on year.
Sidecar capacity is likely to be down by at least 20 percent year on year after a renewal in which ILS investors have pulled back significant capacity, sources estimated.
Amid an uncertain year for the life insurance segment, mortality and value-in-force transactions remained the mainstay of life ILS managers as fundraising tapered off after a 2018 growth spurt.
Willis Towers Watson has tipped that greater focus will be drawn to ILS domiciles and structures in 2020 amid an “unusual amount of innovation” from existing and emerging jurisdictions.
Australian investors were among the ILS pioneers and some speculate that consolidation of Australian pensions into mega funds could help grow the industry’s local presence further.
Approval of the settlement agreement puts PG&E on a path to emerge from Chapter 11 by 30 June, which is the deadline to participate in California’s wildfire fund.
As part of the deal, 1347 PIH received five-year rights of first refusal to provide reinsurance on up to 7.5 percent of FedNat’s catastrophe reinsurance programme.
A busier cat bond market is expected while a loss of investor confidence is squeezing the collateralised and sidecar markets, said managing director of GC Securities Des Potter.
Cat losses and higher reinsurance ceded premiums were partially offset by improved underwriting margins and continued discipline over operating expenses, the carrier said.
2019 year to date performance returned to positive territory for the Eurekahedge ILS Advisers index but the firm warned the next two months could be “challenging”.
The New York-listed Blue Capital Reinsurance Holdings posted a net income of $1.7mn for the first seven months of 2019, as the run-off process continued.
A group of ILS funds tracked by Trading Risk produced more robust returns in Q3 compared to last year’s third quarter, despite Typhoon Faxai and Hurricane Dorian.
The manager bought back and cancelled 900,000 ordinary shares worth $180,000 at the end of last week, as the process of winding up the business continues.