Catastrophe bonds

Buyers expect rates to climb by 2.5% to 15%, continuing year-on-year hikes since 2017.

The ratings agency’s survey found that a trend of rising claims is expected to continue, but reinsurance demand is likely to flatten, mostly because of high costs.

The Florida hurricane season still has three months to run in a predicted above-average year.

Outside the cat bond segment, Aon said it was observing rising sidecar interest, putting volumes at $7.1bn from $6.4bn the prior year.

Idalia might add further aggregate erosion to several cat bonds covering various perils over an annual risk period, it stated.

Hurricane Idalia will reach Jacksonville but will have weakened by then

The transaction covered a portfolio of $250mn in casualty risk premiums.

Investors will have to wait an additional three years for collateral to be returned.

Swiss Re Capital Markets said there was a ‘strong chance’ of a record-breaking year in size and number of new bonds.

Allstate reported cat losses of $1bn and $885mn for June and May.

The US pension fund heard pitches from four ILS manager finalists at its board meeting in May in a selection process following a request for proposals issued last October.

At least six aggregate bonds offering convective storm cover have been marked down by around an average of more than 20% on the secondary market.