Transatlantic Re is to sponsor its first catastrophe bond transaction, with the launch to investors of a $200m Bowline Re deal, that will provide the firm with collateralised multi-peril reinsurance coverage. It is understood TransRe is looking for coverage across a four-year term. The covered perils include named storms, earthquakes and severe thunderstorms and the coverage will extend across the United States, Puerto Rico, Canada, the US Virgin Islands and District of Columbia.
The Resilience Re platform run by Willis Towers Watson Securities has issued $150m of series 1841A notes on the Bermuda Stock Exchange (BSX), bringing the platform’s total issuance for 2018 up to $262.6m. The notes are due to expire in April 2019.
Bermuda Stock Exchange
The first quarter of 2018 saw a record $3.1 billion of underwritten, widely-distributed non-life ILS capacity issued through 12 catastrophe bonds, compared to $1.7 billion through five bonds in the same quarter of 2017. Bill Dubinsky, managing director and ead of ILS, at Willis Towers Watson Securities said: “We expect the current trends in ILS growth to continue. Without a true surprise loss, like an ice-storm in Miami, end-investors will continue to allocate capacity to ILS."
Willis Towers Watson
Cat bonds continued to demonstrate value both to sponsors and investors alike throughout Q1, and there remained strong demand for issuance on both sides, according to Aon Securities. Maturities for the quarter totalled $1.37 billion of property catastrophe bonds – which was not only easily replaced, but also significantly expanded, bringing the market to a new high of $29 billion of catastrophe bonds on-risk as at March 31, 2018, of which $27.3 billion were property transactions.
Swiss investors are understood to be diversifying their ILS portfolios after last year's hurricane losses. The €197.2 billion Dutch health care pension provider PFZW reported 13.3% losses from its portfolio of insurance-linked portfolios following Hurricanes Harvey, Irma and Maria. In Switzerland, the €14.9 billion pension fund for the Swiss railways (PKSBB) noted it had suffered “significant losses" to its ILS portfolio amounting to over 9%. Meanwhile, the pension fund for the city of Winterthur (PKSW) was reported to have lost 8% on its ILS portfolio last year.
Investment & Pensions Europe
Economic losses to disasters in Asia and the Pacific could exceed $160 billion annually by 2030, the United Nations development arm in the region warned on Tuesday, urging greater innovation in disaster risk financing. The need is all the more pressing given that only eight per cent of region’s losses are insured. “Business as usual is unsustainable […] policy makers and financial strategists in both the public and private sectors have to work together,” said the head of UN Economic and Social Commission for Asia and the Pacific.
Posted: Monday, April 30th, 2018