Catastrophe bonds

The asset manager’s flagship ILS funds posted stellar returns for its 2023 fiscal year.

The broker’s report also hailed the best risk-adjusted margins for ILS investors in a decade.

The firm’s flagship reinsurance strategy delivered its best performance in its 10-year history.

The broker said global cat rates rose 3% in the 1 January reinsurance renewals.

The firm’s reinsurance leader said over-subscriptions on cat reinsurance programmes have been driven by a psychological shift.

The multiple on the deal has settled at 2.3x the sensitivity case expected loss, down from 2.6x, according to initial pricing guidance.

The broker’s 1st View report predicted that cat bond issuance should remain elevated until at least Q2 2024.

Tsunami warnings were initially issued following the earthquake but were subsequently downgraded.

Guy Carpenter said overall reinsurance capacity ranged from "adequate to ample" in the 1.1 renewal, with its estimate of ILS growth coming in ahead of mid-year projections.

Fermat managing director Nelson Seo has forecast that continued high demand could push ILS issuance volumes even higher in 2024.

The deal will benefit Lloyd’s Syndicate 1301 and provide annual aggregate cover on a PCS industry loss basis for US named storm and North America quake.

The deal closed at the top end of the Farm Bureau’s revised target size, having grown from an initial $200mn offering.