Rates

The start-up carrier had initially sought $150mn of North American storm and earthquake cover from its first-ever cat bond.

The rating could fall if the company fails to meet deadlines, the agency has warned.

Twelve Capital's Urs Ramseier says the potential for more distressed opportunities to appear will depend on the extent to which carriers pass on increased reinsurance costs to policyholders

The European earthquake bond will pay investors a 450 basis point spread.

Cat bond investors received better risk-adjusted rates on new issuances, but lower risk levels meant average spreads fell year on year.

The consultancy firm also argued that the World Bank should buy more pandemic cover after receiving a payout under its cat bond programme.

Rate increases should continue but may be increasingly fragmented by January 2021.

Reduced exposures take the vertical limit on carrier’s cat programme down to A$6.5bn from A$7.2bn.

An influx of underwriting capacity will likely limit the extent to which reinsurance rates rise, the agency said.

RoLs could rise moderately in July with stronger gains in January, market participants said.

The Florida Senator says tackling legal fees is a priority as demand for reform grows – but it will take time to implement.

An active hurricane season could further amplify RoL increases, the investment bank warns.