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UCITS fund diversification targets limit their capacity for US wind bonds.
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Pricing fell by 13.5% on a weighted average basis across deals that updated last week.
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Several Florida start-ups are poised to begin writing business this year.
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Modest increases to reinsurance costs were partly offset by the Australia cyclone pool.
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The estimate is net of its per-occurrence reinsurance program and gross of tax.
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The aim is to capitalise on cat bond market’s robust growth and US peril concentration.
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The loss aggregator has classified the fires as two separate events for reinsurance purposes.
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New limit of $474mn entered the market across two deals.
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The Class B segment of the bond has priced below initial guidance.
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Wildfire is rarely singled out as an exposure that can shift portfolio outcomes.
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The bond provides coverage for storms, earthquakes and severe weather events.
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Two ILS funds featured in the top five asset-raisers within the index.