Catastrophe bonds

The Chinese state has given domestic insurers the green light to transact “disaster bonds”.

Pricing on the Japan earthquake deal settled toward the higher end of guidance.

The Durant Re IC deal was the first humanitarian cat bond in the history of the ILS market.

It would be the Japanese mutual’s largest ILS transaction to date.

Daniel King-Robinson and Tobias Engeli have joined Twelve Capital from EFG Bank to work on sustainable and climate investing, which the firm said strengthened its ESG focus across portfolios for institutional clients.

One of the ongoing trends within the ILS market over past years has been an increasing demand from existing investors to look for something different within their portfolio.

The state body supporting earthquake cover has seen risk transfer requirements swell over the past decade.

The insurer’s net monthly cat losses reached $876mn.

The sharpest decline was with the Catahoula Re 2020-1 Class A deal issued by Louisiana Citizens on which bids dropped 60.3c from 100.3c to 40c.

The lack of modelling expertise for higher-frequency, secondary ‘all peril’-type losses is putting a rosier tint on catastrophe bonds

In its renewal season update, the carrier said Bernd, Ida, Uri and the pandemic would force up pricing across lines and regions.

Ongoing high claims from risks such as winter storm, wildfire or convective storm are playing into the climate-change debate over whether and to what extent cat reinsurers are mispricing their business.