CCR Re launches seventh 157 Re reinsurance sidecar
France-based CCR Re announced the successful renewal and launch of a seventh property catastrophe (CAT) sidecar in the 157 Re series of deals. Now in its seventh year, the company has sponsored a 157 Re reinsurance sidecar annually since 2019, but the sizes of the sidecars have never been disclosed. [Source: Artemis.bm]
Inigo Insurance is looking to issue at least $100 million Montoya Re Ltd. (Series 2025-1) two-tranche three-year catastrophe (CAT) bonds. They will cover losses from U.S. named storms, and U.S. and Canada earthquakes, using a PCS industry loss index trigger, the Class A tranche on an annual aggregate basis and the Class B tranche on a second and subsequent event per-occurrence basis. [Source: Artemis.bm]
Munich Re secures Eden Re II reinsurance sidecar at $150m again for 2025
Munich Re's Eden Re II Ltd. collateralized reinsurance sidecar vehicle issued the second tranche of its Series 2025-1 Class A participating notes maturing on March 19, 2030. This $85.5 million tranche brings the total issuance to $150 million, the same size as the previous year's renewal. [Source: Artemis.bm]
Aetna targets its largest Vitality Re health ILS, $250m Vitality Re XVI 2025 issuance
U.S.-based Aetna is looking to issue at least $250 million Vitality Re XVI Ltd (Series 2025) three-tranche four-year health and medical benefits catastrophe (CAT) bonds. They will cover payouts on Aetna's health and medical insurance on a medical benefit claim ratio basis, which is effectively an indemnity trigger based on the health and medical benefits insurers’ claims experience. [Source: Artemis.bm]
Catastrophe bond and related insurance-linked securities (ILS) market issuance of $4.5 billion in the fourth-quarter was sufficient to take the full-year 2024 total to a record $17.7 billion, while the outstanding market reached a new all-time-high of $49.5 billion, Artemis’ new quarterly cat bond market report shows.
Munich Re starts Eden Re II 2025 sidecar with $64.5m Class A notes
Munich Re's Eden Re II Ltd. collateralized reinsurance sidecar vehicle issued $64.5 million of Series 2025-1 Class A participating notes maturing on March 19, 2030. Munich Re typically brings two tranches of listed reinsurance sidecar notes to market every year, one in late December (which this note represents), and the other in early January, which is typically much larger. [Source: Artemis.bm]
SafePoint doubles Nature Coast Re 2025-1 cat bond size to $200m
SafePoint Insurance Company will issue $100 million Nature Coast Re Ltd. (Series 2025-1) single-tranche three-year catastrophe (CAT) bonds, double the initial $100 million target. They will cover losses from named storms across the states of Florida, Louisiana, Alabama, Mississippi, and Texas on an industry-loss index trigger basis. [Source: Artemis.bm]
QBE gets $250m Bridge Street Re cat bond priced 14% below initial mid-point
Australia-based QBE Insurance Group will issue $250 million Bridge Street Re Ltd. (Series 2025-1) single-tranche three-year catastrophe (CAT) bonds. They will cover losses from named storms and earthquakes throughout the United States, Puerto Rico, DC, the US Virgin Islands and Canada, on an industry-loss trigger and annual aggregate basis. [Source: Artemis.bm]
Taiping Re to sponsor Silk Road Re catastrophe bond out of Hong Kong
Hong Kong-based Taiping Reinsurance Company (Taiping Re) is looking to privately place $35 million Silk Road Re Limited single-tranche three-year catastrophe (CAT) bonds. They will cover losses from earthquakes in China on a parametric trigger basis, and certain natural catastrophe peak perils in the United States on an industry-loss index trigger basis. See also https://www.artemis.bm/news/silk-road-re-cat-bond-gives-taiping-re-35m-of-3-year-china-quake-us-wind-retro [Source: Artemis.bm]
GCB pension scheme completes £20m buy-in using PIC's Mosaic framework
The General Council of the Bar (GCB) Pension and Life Assurance Fund completed a £20 million buy-in with Pension Insurance Corporation (PIC), covering the benefits of 103 members. It was the first transaction completed using Mosaic, PIC’s streamlined service for pension schemes with assets under £100 million. Mosaic is designed to offer price monitoring and standardized processes and contracts to give small schemes a straightforward, efficient way of securing their members’ benefits. [Source: PensionsAge]
Airways Pension Scheme completes £340m longevity swap with MetLife
The Trustees of the Airways Pension Scheme, the defined benefit corporate pension scheme of British Airways, have completed a £340 million longevity swap transaction with Met Life's Metropolitan Tower Life Insurance Company subsidiary and Zurich UK. It covers 100% of the longevity risk associated with about 1,100 scheme members. The longevity risk was insured with Zurich Assurance Limited, acting as the intermediary insurer, then fully-reinsured through a back-to-back reinsurance arrangement out to the MetLife entity. The insurance contract will be added to the scheme’s investment portfolio to generate income if scheme members live longer than currently anticipated. [Source: Reinsurance News]
Beazley secures its largest nat cat bond yet, as $200m Fuchsia 2 priced at low-end
U.K.-based Beazley will issue $200 million London Bridge 2 PCC Limited (Fuchsia 2 – 2024-1) single-tranche three-year catastrophe (CAT) bonds, versus the original $150 million target. They will cover losses from named storm and earthquake events that impact the United States, Canada and certain parts of the Caribbean on an indemnity trigger and per-occurrence basis. [Source: Artemis.bm]
Fidelis secures its biggest cat bond yet, as $375m of Herbie Re 2024-2 notes priced
Fidelis Insurance will issue $375 million Herbie Re Ltd. (Series 2024-2) three-tranche catastrophe (CAT) bonds, versus the original $300 million target. There will be a two-year tranche, and two four-year tranches. They will cover losses from US named storms and US earthquakes, including DC, Puerto Rico and the US Virgin Islands, on an annual aggregate and territory weighted industry loss index triggered basis. [Source: Artemis.bm]
Hunt Brothers and Company pension scheme secures £1.4m buy-in
The Hunt Brothers and Company Limited Pension Fund has secured a £1.4 million full scheme buy-in with Just Group, covering the benefits of eight pensioner members. The transaction completed the buy-in of all scheme liabilities, with the scheme now expected to proceed to full buyout and wind up. [Source: PensionsAge]
The Tennants Consolidated Limited Pension Scheme has completed a £102 million full scheme buy-in with Royal London, covering 463 pensioners and 241 deferred members. It is the third external transaction Royal London has completed this year, after a £30 million buy-in with The Retreat York Pension Scheme and a £100 million deal with an unnamed scheme. [Source: PensionsAge]
Progressive secures upsized $345m from largest Bonanza Re cat bond yet
Progressive will issue $345 million Bonanza Re Ltd. (Series 2024-1) three-tranche catastrophe (CAT) bonds, versus the original $225 million target. A $70 million zero-coupon tranche will provide one year of aggregate coverage, and the other two tranches will provide three years of per-occurrence coverage on an indemnity basis. All three will cover losses from named storm, earthquake (fire-following only), severe thunderstorm, winter storm, wildfire in the United States. [Source: Artemis.bm]
TD Insurance seeks first ever pure Canada risk cat bond, C$150m MMIFS Re 2025-1
Canada-based TD Insurance is looking to issue at least C$150 million MMIFS Re Ltd. (Series 2025-1) single-tranche three-year catastrophe (CAT) bonds. They will cover losses from earthquakes and severe convective storms (SCS) in Canada on an indemnity and per-occurrence basis. [Source: Artemis.bm]
Mean-variance longevity risk-sharing for annuity contracts
This paper investigates longevity risk-sharing as a solution to the sustainability and affordability problems in the annuity market, and in particular how much longevity risk could be transferred back to policyholders assuming mean-variance preference functions. First, it provides dynamic risk-sharing rules for annuities. Second, it studies the contract properties from the perspectives of both the provider and individual policyholders. Third, it highlights and accounts for two levels of uncertainty and two levels of correlation induced by systematic longevity risk. Fourth, it provides necessary and sufficient conditions on the premium loading and the share of transferred risk, such that both parties prefer risk-sharing. The analytical and numerical results of the paper offer a deeper understanding of the effects of systematic and diversifiable risks on those preferences, and show that the products presented in this paper are suitable retirement solutions.
QBE targets $250m Bridge Street Re 2025-1 catastrophe bond
Australia-based QBE Insurance Group is looking to issue at least $250 million Bridge Street Re Ltd. (Series 2025-1) single-tranche three-year catastrophe (CAT) bonds. They will cover losses from named storms and earthquakes throughout the United States, Puerto Rico, DC, the US Virgin Islands and Canada, on an industry-loss trigger and annual aggregate basis. [Source: Artemis.bm]
At the halfway point of 2024, consultancy Barnett Waddingham said that volumes in the U.K. bulk annuity market are set to break 2023's £49.1 billion record high. New players have entered the market in 2024 (Brookfield, Royal London and Utmost) and M&G, which re-entered the bulk annuity space last year, is making waves with its innovative ‘risk-sharing’ buy-in offering. [Source" Pensions Expert]
Pension Insurance Corporation (PIC) has completed a £370 million buy-in of the Hays Pension Scheme. The transaction covers 853 pensioners and dependents, and 3,368 deferred members linked to Hays, which injected approximately £13 million to help finance the deal. [Source: Pensions Expert]
American Coastal secures upsized $200m Armor Re II 2024-2 cat bond
American Coastal Insurance Company will issue $200 million Armor Re II Ltd. (Series 2024-2) single-tranche three-year catastrophe (CAT) bonds, versus the original $100 million target. They will cover losses from Florida named storms on an indemnity trigger and per-occurrence basis. [Source: Artemis.bm]
AmFam secures upsized $275m of reinsurance from Four Lakes Re 2024-1 cat bond
American Family Mutual Insurance Company (AmFam) issue $275 million Four Lakes Re Ltd. (Series 2024-1) two-tranche three-year catastrophe (CAT) bonds, versus the original $175 million target. They will cover losses from US named storms, earthquakes, severe thunderstorms, winter storms and wildfires on a per-occurrence and indemnity trigger basis. [Source: Artemis.bm]
Allianz sponsors Sconset Re life reinsurance sidecar
"Allianz has sponsored a life and annuity focused reinsurance sidecar named Sconset Re Ltd., partnering with PIMCO as well as other institutions for asset management support. Sconset Re Ltd. is domiciled in Bermuda and will initially take a US $4 billion block of fixed index annuity risk from Allianz, through a reinsurance arrangement." [Source: Artemis.bm]
Allstate will issue $650 million Sanders Re II Ltd. (Series 2024-3) two-tranche four-year catastrophe (CAT) bonds, versus the original $350 million target. They will cover losses from personal lines property and auto losses from named storm, earthquake, severe weather, wildfire, volcanic eruption, and meteorite impact events in all US states except for Florida, on a per-occurrence and indemnity trigger basis. [Source: Artemis.bm]
Mapfre Re secures debut Recoletos Re cat bond at upsized $125m and reduced pricing
Spain-based Mapfre Re will issue $125 million Recoletos Re DAC (Series 2024-1) single-tranche three-year catastrophe (CAT) bonds, versus the original $100 million target. They will cover losses from named storms in the United States and DC on an annual aggregate and territory weighted industry-loss triggered basis. [Source: Artemis.bm]
Liberty Mutual's new Mystic Re cat bond sized at $325m with lower pricing
Liberty Mutual Insurance will issue $325 million Mystic Re IV Ltd. (Series 2025-1) three-tranche three-year catastrophe (CAT) bonds, versus the original target of $225 million. Two tranches will cover losses from named storms and earthquakes affecting parts of the US, Canada and the Caribbean on an indemnity per-occurrence basis. The third tranche will cover those risks, plus severe weather and wildfires affecting the same areas as the first two tranches, but on an annual aggregate indemnity basis. [Source: Artemis.bm]
"Specialist U.K.-based insurer Rothesay has completed a £50 million buy-in of the Avimo Pension Scheme, covering more than 600 scheme members. The transaction follows a £2.7 billion buy-in for the Thales UK Pension Scheme a year ago. Thales, a multinational electronics company, is the sponsor for both pension schemes." [Source: PensionsExpert]
Can parametric insurance help bridge NatCat protection gaps?
The Bank for International Settlements (BIS) published a paper analyses the key design elements of parametric insurance, synthesizing insights from a survey of 12 insurance supervisory authorities and seven market participants, with a focus on non-agricultural applications for households and small and medium-sized enterprises (SMEs). Key findings stress the importance of transparent and reliable index selection, high-quality data and a supportive regulatory environment. The paper provides actionable recommendations to enhance data quality, improve analytical and modelling capabilities and foster consumer education and awareness. By addressing these challenges, parametric insurance can play a critical role in strengthening economic and societal resilience in the face of growing natural catastrophe risks.
U.K.-based Beazley is looking to issue at least $150 million London Bridge 2 PCC Limited (Fuchsia 2 – 2024-1) single-tranche three-year catastrophe (CAT) bonds. They will cover losses from named storm and earthquake events that impact the United States, Canada and certain parts of the Caribbean on an indemnity trigger and per-occurrence basis. [Source: Artemis.bm]
