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Lower premium rates, wider coverage terms and a fall in bank rates will cap returns this year. -
The two bonds offered are both replacing expiring deals.
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Investor appetite for bonds is exerting pressure on traditional retro providers, according to Gallagher Re.
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New issuance will be supported by new sponsors as well as over $13bn in maturities.
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Reinsurers could use retained earnings to target growth and buy more retro.
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Cat bond market growth has exceeded broker-dealers' 2025 forecasts by some distance.
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CA Fairplan’s Golden Bear Re deal upsized 200% to $750mn.
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The industry has continued to build and innovate through a third strong year of performance.
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Migdal Insurance placed its debut cat bond Turris Re for $100mn of quake limit.
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There are various routes for ILS managers wanting to access the diversity of Lloyd’s underwriting.
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North Carolina Farm Bureau raised $500mn with its latest Blue Ridge Re cat bond deal.
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The cat bond market is on course for $56bn of notional outstanding by the end of this year.
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The outcome of Eaton Fire subrogation is an uncertainty for some vehicles.
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Insurers with SCS exposure reaped fewer benefits but still improved over Q3 2024.
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The shift in multiples is indicative of price softening in the cat bond the past two years.
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The average weighted spread on the deals was 651bps, skewed upward by cyber and wildfire deals.
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Carriers are grappling with a rush of investor interest in longer-tail lines.
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One William Street priced its debut cat bond 13% below the midpoint of guidance.
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Covea’s Hexagon IV Re deal priced 13% below the initial target on a weighted average basis.
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Some experienced investors are pivoting out of cat bonds and into the top layers of private ILS deals.
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So far this year, there have been 11 first-time sponsors to place a deal.
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Spreads on USAA’s latest deal priced below comparative issuances in 2023-2024.
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Key topics include private ILS growth prospects and the longevity of longtail interest.
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Sources have said $1bn+ of fresh capital from the region is expected to be deployed in 2026.
