April 2019 pricing data

So far in 2019, new catastrophe bonds have priced at higher spreads than in the first half of 2017 and 2018. There was also a greater variance in the pricing as investors try to factor in the idiosyncrasies of each issue. In the secondary market, bond yields have risen (and prices have fallen) in response.

Despite the lack of losses, mark-to-market losses combined with continued loss creep means that the Eurekahedge ILS fund index posted historically low returns in Q1. For the first time, the index has generated negative returns in seven of the last twelve months.

ILW returns (from Guy Carpenter) have held onto the rate rises that were seen at 1/1

Pricing in the broader reinsurance market was more stable.

This chart from JLT indicates that the loss level in 2018 was close to the long term trend.

Posted: Monday, May 13th, 2019