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Longevity swap pricing to remain attractive in 2021: WTW
Longevity swap pricing to remain attractive in 2021: WTW
"Longevity swap pricing is expected to remain attractive through the coming year, as reinsurance capital to support large pension risk transfer deals remains abundant and slower mortality improvements feed into reinsurance pricing, according to Willis Towers Watson (WTW)."
#ART#Longevity#Pensions
·artemis.bm·
Longevity swap pricing to remain attractive in 2021: WTW
1tn worth of DB pension risk to be insured by end of 2031
1tn worth of DB pension risk to be insured by end of 2031
£1 trillion of risk from UK DB pension schemes is expected to have been insured by the end of 2031, according to analysis by Hymans Robertson as it publishes its 2021 Risk Transfer Report. Buy-ins/buy-outs and longevity swaps have insured £0.3 trillion of risk from DB pension schemes since 2007 (£180bn of buy-ins/buy-outs and £110bn of longevity swaps). https://www.hymans.co.uk/insights/research-and-publications/publication/risk-transfer-report-2021/
#ART#Longevity#Pensions
·actuarialpost.co.uk·
1tn worth of DB pension risk to be insured by end of 2031
Derisking trend ramped up at end of 2020
Derisking trend ramped up at end of 2020
Twenty bulk annuity deals for a combined volume of £19.9B were reported among the 62 UK corporate pension schemes surveyed by Mandateware in the fourth quarter of 2020. Aviva, Just and Legal & General were responsible for the most transactions, securing three contracts each. The largest transaction recorded was the £5B longevity swap between the £31.4B Barclays Bank UK Retirement Fund and the Reinsurance Group of America. Another high-value deal was the £3.7B longevity swap that the circa £7B Prudential Staff Pension Scheme secured with Pacific Life Re. Other notable transactions included the £17.2B BBC Pension Scheme’s £3B longevity swap with Canada Life Reinsurance and Zurich; Pension Insurance Corporation’s complete buyout of the circa £2B Old British Steel Pension Scheme; and the £1.1B buy-in the circa $2.7B (£2B) Maersk Retirement Benefit Scheme secured with L&G.
#ART#Longevity#Pensions
·pensions-expert.com·
Derisking trend ramped up at end of 2020
Deutsche Bank Pension Scheme completes buy-in
Deutsche Bank Pension Scheme completes buy-in
The £4.5bn Deutsche Bank (UK) Pension Scheme has entered into a buy-in agreement with Legal & General Retirement Institutional. The £570m buy-in is the first pension risk transfer for the scheme, sponsored by a subsidiary of Deutsche Bank. It was completed in the second half of 2020 under an umbrella contract, which will allow quick completion of possible future transactions with L&G.
#ART#Longevity#Pensions
·pensions-expert.com·
Deutsche Bank Pension Scheme completes buy-in
The next-generation of ILS is already in development
The next-generation of ILS is already in development
We’ve just held our fifth ILS NYC event virtually and while we’re disappointed that we couldn’t be in New York to meet with friends, contacts and readers in person, we hope the quality of discussions we produced goes some way to making up for this.
#ART#ILS#CAT
·artemis.bm·
The next-generation of ILS is already in development
FEMA's new FloodSmart Re cat bond could be its largest, at up to $575m
FEMA's new FloodSmart Re cat bond could be its largest, at up to $575m
The U.S. Federal Emergency Management Agency (FEMA) looks set to secure its largest FloodSmart Re catastrophe bond yet, as the target size for the FloodSmart Re Ltd. (Series 2021-1) transaction has been lifted to between $500 million and $575 million, we’re told.
#ART#ILS#CAT
·artemis.bm·
FEMA's new FloodSmart Re cat bond could be its largest, at up to $575m
FEMA's new flood cat bond to settle at upsized $575m, prices down
FEMA's new flood cat bond to settle at upsized $575m, prices down
The U.S. Federal Emergency Management Agency (FEMA) looks set to secure its largest FloodSmart Re catastrophe bond yet, as the target size for the FloodSmart Re Ltd. (Series 2021-1) transaction has been lifted to $575 million. The cat bond will cover $575 million of the National Flood Insurance Program’s (NFIP) losses caused by named storm events, so tropical depressions, storms and hurricanes, as in the other FloodSmart cat bonds, with the protection extending across the United States, Puerto Rico, U.S. Virgin Islands and D.C.
#ART#CAT#ILS
·artemis.bm·
FEMA's new flood cat bond to settle at upsized $575m, prices down
CEA could upsize new Ursa Re II cat bond to $215m
CEA could upsize new Ursa Re II cat bond to $215m
The California Earthquake Authority (CEA) has lifted its target size for its first catastrophe bond transaction of 2021, now seeking up to $215 million of fully collateralized earthquake reinsurance protection with the Ursa Re II Ltd. (Series 2021-1) issuance.
#ART#ILS#CAT
·artemis.bm·
CEA could upsize new Ursa Re II cat bond to $215m
NCIUA returns for $100m Cape Lookout Re 2021 cat bond
NCIUA returns for $100m Cape Lookout Re 2021 cat bond
The North Carolina Insurance Underwriting Association (NCIUA) is back in the catastrophe bond market with its first issuance of 2021, a currently $100 million Cape Lookout Re Ltd. (Series 2021-1) transaction that will sit in the higher layers of its reinsurance tower. The coverage is for losses from named storms and severe thunderstorms to the NCIUA’s portfolio in the state of North Carolina, across a three-year term and on an annual aggregate and indemnity trigger basis.
#ART#ILS#CAT
·artemis.bm·
NCIUA returns for $100m Cape Lookout Re 2021 cat bond
CEA gets $215m Ursa Re cat bond at 11% reduced pricing
CEA gets $215m Ursa Re cat bond at 11% reduced pricing
The California Earthquake Authority (CEA) has successfully secured its first catastrophe bond transaction of 2021 at the upsized $215 million target, while the Ursa Re II Ltd. (Series 2021-1) catastrophe bond has been priced at the low-end of already reduced coupon guidance.
#ART#ILS#CAT
·artemis.bm·
CEA gets $215m Ursa Re cat bond at 11% reduced pricing
West Ferry Printers scheme completes £120m buy-in
West Ferry Printers scheme completes £120m buy-in
The West Ferry Printers Pension Scheme has completed a £120m buy-in transaction with Rothesay Life, securing the benefits for the remaining 263 members of the scheme. In 2008, the scheme entered into a £130m buy-in deal with Norwich Union (now Aviva Group), which covered the liabilities of 1,300 pensioners.
#ART#Longevity#Pensions
·pensions-expert.com·
West Ferry Printers scheme completes £120m buy-in
Tokio Marine seeks $150m Kizuna Re III cat bond from Singapore
Tokio Marine seeks $150m Kizuna Re III cat bond from Singapore
Tokio Marine & Nichido Fire Insurance is back in the insurance-linked securities (ILS) market seeking its fifth Kizuna Re catastrophe bond with a single-tranche $150 million Kizuna Re III Pte. Ltd. (Series 2021-1) transaction that is being issued out of Singapore. It will cover losses from Japanese earthquakes, including losses from related impacts caused by shake, tsunami, fire, flooding and sprinkler leakage, on a three-year aggregate and indemnity basis, across a five year term.
#ART#ILS#CAT
·artemis.bm·
Tokio Marine seeks $150m Kizuna Re III cat bond from Singapore
Risk settlement market breaks new record in 2020
Risk settlement market breaks new record in 2020
Taking into account bulk annuity deals and longevity swaps, according to Aon, the UK risk settlement market exceeded £54bn last year, topping 2019’s £52bn, despite the difficulties imposed by the pandemic. Only three bulk annuity transactions in the first half of last year exceeded £1bn, compared with 12 over the same period in 2019, according to figures previously reported by LCP. However, there were double the number of mid-sized transactions with values between £100m and £500m, with 22 occurring in 2020, which compares with 11 in the previous year. https://www.aon.com/getmedia/110f3c38-1dab-4a32-ae1a-92f455fe3c89/Risk-Settlement-2020-market-review.aspx
#ART#Longevity#Pensions
·pensions-expert.com·
Risk settlement market breaks new record in 2020
Universal targets first cat bond with $100m Cosaint Re from Singapore
Universal targets first cat bond with $100m Cosaint Re from Singapore
Florida-headquartered Universal Insurance has entered the catastrophe bond market for the first time with a single-tranche $100 million Cosaint Re Pte. Ltd. (Series 2021-1) transaction that is being issued out of Singapore. It will cover losses from U.S. named storms for its Universal Property and Casualty Insurance Company and any direct subsidiaries.
#ART#ILS#CAT#UnitedStates
·artemis.bm·
Universal targets first cat bond with $100m Cosaint Re from Singapore
Florida Citizens to seek $850m of cat bonds before 2021 hurricane season
Florida Citizens to seek $850m of cat bonds before 2021 hurricane season
Florida’s Citizens Property Insurance Corporation is targeting a $2.6 billion reinsurance and risk transfer program in advance of the 2021 hurricane season beginning and within the renewed towers could be $850 million of new catastrophe bonds. Right now, Florida Citizens has two chunks of catastrophe bond coverage in-force, $110 million of reinsurance from the Everglades Re II Ltd. (Series 2020-2) transaction that provides some aggregate reinsurance protection for Florida Citizens personal lines account tower.
#ART#ILS#CAT#UnitedStates
·artemis.bm·
Florida Citizens to seek $850m of cat bonds before 2021 hurricane season
Security First's new cat bond jumps 125% to $225m, prices down 16%
Security First's new cat bond jumps 125% to $225m, prices down 16%
Security First Insurance Company is now set for its largest catastrophe bond transaction yet, as its new First Coast Re III Pte. Ltd. (Series 2021-1) issuance has more than doubled in size to $225 million while being marketed. The single-tranche bond will provide Security First Insurance with a source of Florida named storms and severe thunderstorms reinsurance protection, across an almost four year term, with coverage on an indemnity trigger and cascading, per-occurrence basis.
#ART#CAT#ILS#UnitedStates
·artemis.bm·
Security First's new cat bond jumps 125% to $225m, prices down 16%
Sompo seeks $200m Sakura Re 2021 Japan & US multi-peril cat bond
Sompo seeks $200m Sakura Re 2021 Japan & US multi-peril cat bond
Japanese insurer/reinsurer Sompo has returned to the catastrophe bond market to sponsor its first issuance in four years, as it seeks a $200 million source of Japanese and US multi-peril catastrophe reinsurance with a four-year two-tranche Sakura Re Ltd. (Series 2021-1) deal. They will cover US earthquakes and Japanese typhoons and floods.
#ART#CAT#ILS
·artemis.bm·
Sompo seeks $200m Sakura Re 2021 Japan & US multi-peril cat bond
World Bank to sponsor Jamaican cat bond before 2021 hurricane season
World Bank to sponsor Jamaican cat bond before 2021 hurricane season
The Government of Jamaica aims to have its World Bank supported catastrophe bond issued and in place, providing a much-needed source of capital market backed disaster insurance protection in advance of the 2021 hurricane season. The deal has been a work-in-progress for some years, but was delayed by the Covid-19 pandemic and the ensuing financial market volatility.
#ART#CAT#ILS
·artemis.bm·
World Bank to sponsor Jamaican cat bond before 2021 hurricane season
Arch Capital sponsors $70m Voussoir Re 2021 sidecar renewal
Arch Capital sponsors $70m Voussoir Re 2021 sidecar renewal
Bermuda-headquartered Arch Capital Group has returned to the capital markets to sponsor a $69.92 million three-year single-tranche sidecar, issuance of Series 2020-1 Class B participating notes through its special purpose insurer Voussoir Re.
#ART#CAT#ILS
·artemis.bm·
Arch Capital sponsors $70m Voussoir Re 2021 sidecar renewal
NCIUA’s new cat bond hits $250m raised target, price drops 13%
NCIUA’s new cat bond hits $250m raised target, price drops 13%
The North Carolina Insurance Underwriting Association (NCIUA) latest catastrophe bond has now upsized by 150%, with the Cape Lookout Re Ltd. (Series 2021-1) transaction set to provide it $250 million of reinsurance from the capital markets. At the same time, the spread on the cat bond notes dropped considerably thanks to ILS investor appetite, with the pricing eventually fixed at the bottom of reduced guidance, indicating a roughly 13% decline in pricing during marketing.
#ART#CAT#ILS
·artemis.bm·
NCIUA’s new cat bond hits $250m raised target, price drops 13%
SCOR gets quota share longevity retro from Mangrove sidecar
SCOR gets quota share longevity retro from Mangrove sidecar
French reinsurer SCOR has put in place a sidecar-like, quota share retrocession vehicle named Mangrove Insurance PCC Limited through which it transfers some of its longevity risk to third-party investors. It provides SCOR with retrocessional cover for longevity risks arising from nine existing in-force reinsurance treaties it has in place with clients in the United Kingdom, across a long risk period from October 1st 2019 until October 1st 2048. Artemis.bm speculates that the structure might renew or roll over at defined intervals to enable a degree of investor liquidity.
#ART#Longevity
·artemis.bm·
SCOR gets quota share longevity retro from Mangrove sidecar
Palomar's new Torrey Pines catastrophe bond grows to $400m
Palomar's new Torrey Pines catastrophe bond grows to $400m
Palomar Insurance Holdings is set for a successful visit to the catastrophe bond market with its new Torrey Pines Re Pte. Ltd. (Series 2021-1) two-tranche cat bond that has grown by one-third while marketing to reach $400 million in size. Both tranches will provide earthquake reinsurance protection, covering 50 states of the U.S., across a just over three-year term to the end of June 2024 and on an indemnity and per-occurrence trigger basis.
#ART#CAT#ILS
·artemis.bm·
Palomar's new Torrey Pines catastrophe bond grows to $400m
Universal's Cosaint Re cat bond target lifted to $150m, while pricing drops
Universal's Cosaint Re cat bond target lifted to $150m, while pricing drops
The first catastrophe bond to be sponsored by Florida headquartered insurer Universal Insurance Holdings looks likely to upsize with the target now lifted by 50% to $150 million, while at the same time the price guidance for the three-year single-tranche Cosaint Re Pte. Ltd. (Series 2021-1) transaction has been lowered. Universal is looking to secure collateralized reinsurance protection against losses from U.S. named storms.
#ART#ILS#CAT#UnitedStates
·artemis.bm·
Universal's Cosaint Re cat bond target lifted to $150m, while pricing drops
Tokio Marine's new Kizuna Re cat bond the latest price drop in 2021
Tokio Marine's new Kizuna Re cat bond the latest price drop in 2021
"The price guidance has been lowered for Tokio Marine & Nichido Fire Insurance Co’s fifth Kizuna Re catastrophe bond, making the $150 million Kizuna Re III Pte. Ltd. (Series 2021-1) transaction the latest to see its pricing fall during marketing."
#ART#CAT#ILS
·artemis.bm·
Tokio Marine's new Kizuna Re cat bond the latest price drop in 2021
Hannover Re and AXA UK in £3bn longevity swap, a non-pensioner first
Hannover Re and AXA UK in £3bn longevity swap, a non-pensioner first
The AXA UK Group Pension Scheme has entered into a £3 billion longevity swap with reinsurance firm Hannover Re, covering longevity risk associated with pensions that may come into payment after March 31 2019. Unlike most such swaps, the majority of the longevity risk transferred is related those yet to draw pension benefits. The swap closed on February 27th 2021 and form’s part of the AXA pension scheme’s investment portfolio, building upon previous longevity risk transfer transactions undertaken to protect pensions that had already come into payment up to March 31 2019.
#ART#Longevity#Pensions
·artemis.bm·
Hannover Re and AXA UK in £3bn longevity swap, a non-pensioner first