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Arch's Claveau Re retro cat bond priced at upsized $150m
Arch's Claveau Re retro cat bond priced at upsized $150m
Bermuda-based Arch Capital issued $150 million Claveau Re Ltd. (Series 2021-1) single-tranche four-year catastrophe bonds. It will cover against losses on an industry loss trigger and annual aggregate basis across a wide range of perils, including US named storms, earthquakes, severe thunderstorms, wildfires and winter storms; US Caribbean quakes; Japanese typhoons and earthquakes; Canadian named storms, severe thunderstorms and winter storms; European windstorms; Italian earthquakes; Turkish earthquakes; Australian earthquakes and tropical cyclones; and New Zealand earthquakes. Two weeks ago, when the deal first came to light, it was aiming for $125 to $150 million of issuance, and pricing guidance ranged from 17% to 17.75%, but it has now tightened to 17% to 17.25%.
#ART#CAT#ILS
·artemis.bm·
Arch's Claveau Re retro cat bond priced at upsized $150m
Jamaica's first cat bond launched at $175m by World Bank
Jamaica's first cat bond launched at $175m by World Bank
The World Bank's Global Debt Issuance Facility has launched a $175 million+ catastrophe bond to provide the Jamaican government with protection against named tropical storms and hurricane disasters. The series 130 Capital-At-Risk (CAR) Class A single-tranche notes are being offered with coupon price guidance in a range from 3.75% to 4.5%.
#ART#CAT#ILS
·artemis.bm·
Jamaica's first cat bond launched at $175m by World Bank
Astro Re cat bond shrinks to $40m, at higher-end of pricing
Astro Re cat bond shrinks to $40m, at higher-end of pricing
Frontline Insurance has downsized from $100 million+ to $40 million its Astro Re Pte. Ltd. (Series 2021-1) single-tranche four-year deal. It will still cover named storm reinsurance protection for itself and subsidiary First Protective from its It will cover named storm losses affecting the states of Florida, Alabama, Georgia, North Carolina and South Carolina, on an indemnity trigger and per-occurrence basis. Price guidance is now at the top end of the initial 7.25% to 8% range. This could be because the previous $350 million Frontline Re Ltd. (Series 2018-1) transaction is facing losses and as a result one tranche of its notes has been trading at almost rock-bottom pricing on the threat of losses from hurricane Michael hitting the attachment point.
#ART#ILS#CAT#UnitedStates
·artemis.bm·
Astro Re cat bond shrinks to $40m, at higher-end of pricing
Commonwealth Bank of Australia scheme secures full buy-in
Commonwealth Bank of Australia scheme secures full buy-in
The Commonwealth Bank of Australia (UK) Staff Benefits Scheme has agreed to a £420 million full buy-in with Legal & General covering all of the scheme’s defined benefit members. Prior to the buy-in, the scheme’s strategic asset allocation stood at 23% income assets and 77% protection assets.
#ART#Longevity#Pensions
·pensions-expert.com·
Commonwealth Bank of Australia scheme secures full buy-in
Swiss Re's Vita Capital mortality bond settles at $120m, priced on target
Swiss Re's Vita Capital mortality bond settles at $120m, priced on target
Swiss Re ended up issuing $120 million new Vita Capital VI Limited (Series 2021-1) single-tranche 3.5-year mortality catastrophe bonds. The covered areas are Australia, Canada, the UK and the United States. The original target issue size was $75 million, but it was raised to a $100 to $125 million range some weeks ago.
#ART#Mortality#CAT#ILS
·artemis.bm·
Swiss Re's Vita Capital mortality bond settles at $120m, priced on target
Digital imaging scheme completes £230m buy-in
Digital imaging scheme completes £230m buy-in
“The Agfa UK Group Pension Plan has completed a £230m annuity buy-in transaction with Phoenix Group, covering 70 per cent of its pensioner liabilities. This is the first bulk annuity transaction of the analogue and digital imaging products multinational’s UK defined benefit scheme, a statement read. The sponsor provided additional funding support to facilitate the pensioner buy-in.”
#ART#Longevity#Pensions
·pensions-expert.com·
Digital imaging scheme completes £230m buy-in
Jamaica's World Bank catastrophe bond could upsize to $185m
Jamaica's World Bank catastrophe bond could upsize to $185m
"The first catastrophe bond for Jamaica, which as we were first to report ten days ago launched as a $175 million IBRD CAR 130 transaction with the support of the World Bank, is now said by our sources to have a chance of closing a little larger, at $185 million in size."
#ART#CAT#ILS
·artemis.bm·
Jamaica's World Bank catastrophe bond could upsize to $185m
Jamaica's cat bond priced at upsized $185m, ILS funds take 66% of notes
Jamaica's cat bond priced at upsized $185m, ILS funds take 66% of notes
The World Bank's Global Debt Issuance Facility issued $185 million of Series 130 Capital-At-Risk (CAR) Class A single-tranche catastrophe bonds to provide the Jamaican government with protection against named tropical storms and hurricane disasters. This first catastrophe bond offering for Jamaica was upsized slightly from the original $175 million target, and at 4.4% it was priced at the upper end of the original price guidance of 3.75% to 4.5%. Dedicated insurance-linked securities (ILS) investment funds absorbed 66% of the notes.
#ART#ILS#CAT
·artemis.bm·
Jamaica's cat bond priced at upsized $185m, ILS funds take 66% of notes
Mercury gets $50.7m CA wildfire cat bond via Aon's Randolph Re platform
Mercury gets $50.7m CA wildfire cat bond via Aon's Randolph Re platform
California-headquartered Mercury Insurance secured $50.7 million of California wildfire reinsurance protection through a Randolph Re (Series 2021-1) one-year zero-coupon private catastrophe bond issued using Aon’s platform. It will cover California wildfire-related losses, including those that follow earthquakes.
#ART#ILS#CAT
·artemis.bm·
Mercury gets $50.7m CA wildfire cat bond via Aon's Randolph Re platform
Kingfisher completes £900m buy in; Londis scheme winds up
Kingfisher completes £900m buy in; Londis scheme winds up
"The £3.6 billion Kingfisher Pension Scheme has completed a £900 million bulk annuity transaction with Aviva Group, insuring the pension liabilities of more than 8,000 members. This is the third bulk annuity purchase for the scheme, as it completed a £230 million buy-in with Legal & General in 2016 and a £200 million buy-in with Pension Insurance Corporation in 2018. Also, the Londis Pension Scheme is being wound up following a buy-in with Legal & General Assurance Society. The change affects less than 60 members."
#ART#Longevity#Pensions
·pensions-expert.com·
Kingfisher completes £900m buy in; Londis scheme winds up
Legal & General DB scheme secures £925m derisking transaction
Legal & General DB scheme secures £925m derisking transaction
The Legal & General Group UK Pension and Assurance Fund completed a £925 million assured payment policy (APP) transaction with Legal & General Assurance Society. L&G’s APP solution provides pension schemes with a method of liability cash flow matching, selectively insuring against investment related risks such as changes in asset yields, interest rates and inflation. An APP allows a pension scheme to begin its derisking journey with an insurer and provides greater certainty on the timing and cost of a future buy-in or buyout. The fund’s sister scheme, the Legal & General Group UK Senior Pension Scheme, completed a similar APP transaction worth £400 million last year.
#ART#Longevity#Pensions
·pensions-expert.com·
Legal & General DB scheme secures £925m derisking transaction
Red Cross targets cat bonds for nature-based, humanitarian, resilience financing
Red Cross targets cat bonds for nature-based, humanitarian, resilience financing
"The Red Cross, working alongside insurance-linked securities (ILS) risk securitisation facilitator and risk transfer consultancy Replexus Group, is developing a solution to promote nature-based solutions to disaster risk, financed partly through the use of catastrophe bonds, as well as other humanitarian and development scenarios."
#ART#CAT#ILS
·artemis.bm·
Red Cross targets cat bonds for nature-based, humanitarian, resilience financing
Athene uses ACRA sidecar in $4.9bn pension risk transfer, fees rise
Athene uses ACRA sidecar in $4.9bn pension risk transfer, fees rise
Lockheed Martin transferred $4.9 billion in pension obligations to Athene Holding Ltd., the life and retirement reinsurance company majority owned by investor and private equity specialist Apollo Global, backed by third-party capital from its Athene Co-Invest Reinsurance Affiliate (ACRA) sidecar. Athene’s wholly-owned subsidiaries, Athene Annuity and Life Company and Athene Annuity & Life Assurance Company of New York will provide annuity benefits to the approximately 18,000 participants of Lockheed Martin’s pension plan currently receiving benefits.
#ART#Longevity#Pensions
·artemis.bm·
Athene uses ACRA sidecar in $4.9bn pension risk transfer, fees rise
Uk’s bulk annuity market to reach £25bn in second half of 2021
Uk’s bulk annuity market to reach £25bn in second half of 2021
"Despite a quieter start to the year in the UK’s bulk annuities market, the second half of the year is “expected to be very busy” reaching a volume of around £25bn in deals, analysis from Legal & General has shown. There have been fewer jumbo risk transfer transactions in the UK market in 2021 when compared with previous years.  However, the trend towards opportunities for smaller and mid-sized schemes has continued as the market has proven its strength and resilience over the past 15 months."
#ART#Longevity#Pensions
·pensions-expert.com·
Uk’s bulk annuity market to reach £25bn in second half of 2021
Signet Group scheme completes full buy-in with Rothesay
Signet Group scheme completes full buy-in with Rothesay
"The Signet Group Pension Scheme has completed a £236m full buy-in with Rothesay Life. The buy-in secures the defined benefit liabilities for the entire scheme, including 825 deferred members and 1,084 pensioners in payment. It is intended that the bulk annuity deal will transition into a buyout in due course."
#ART#Longevity#Pensions
·pensions-expert.com·
Signet Group scheme completes full buy-in with Rothesay
Pearl Group pension fund completes further buy-in
Pearl Group pension fund completes further buy-in
The £2.9 billion Pearl Group Staff Pension Scheme, one of Phoenix Group’s main pension schemes, has completed a second £998 million buy-in with the group’s life assurance company, Phoenix Life. The scheme entered into a commitment agreement with its principal employer, Pearl Group Holdings No 2, to complete a series of buy-ins scheduled to be executed by December 31, 2023. The first buy-in was worth £731 million and was completed in November 2020. This latest one covers around 35% of the scheme’s pensioner and deferred member liabilities.
#ART#Longevity#Pensions
·pensions-expert.com·
Pearl Group pension fund completes further buy-in
Buy-in and buyout volumes to reach more than £8bn
Buy-in and buyout volumes to reach more than £8bn
Total UK pension scheme buy-in and buyout volumes over the first half of 2021 are expected to reach over £8bn, according to new analysis by Hymans Robertson. By comparison, total pension scheme buy-in and buyout volumes stood at £12.6bn in the first half of 2020 and £18.8bn in the second half of last year, according to Hymans Robertson.
#ART#Longevity#Pensions
·pensions-expert.com·
Buy-in and buyout volumes to reach more than £8bn
Cat bond market can grow to $50bn, pandemic risk & ESG are drivers: Swiss Re
Cat bond market can grow to $50bn, pandemic risk & ESG are drivers: Swiss Re
"After a particularly busy first-half of 2021 for catastrophe bond issuance, global reinsurance firm Swiss Re’s Capital Markets unit believes that a $50 billion market is possible by 2025 and that two drivers of further insurance-linked securities (ILS) market growth could be pandemic risk and ESG."
#ART#ILS#CAT
·artemis.bm·
Cat bond market can grow to $50bn, pandemic risk & ESG are drivers: Swiss Re
State of the 144A P&C Catastrophe Bond Market: 2008-2021YTD
State of the 144A P&C Catastrophe Bond Market: 2008-2021YTD
In the first half of 2021, there was a total of $7.9 billion in new CAT bond new issuance – a 25% increase over the same period in 2020. The total outstanding risk capital increased by $2 billion (accounting for maturities) over 2020 levels.
#ART#CAT#ILS
·gccapitalideas.com·
State of the 144A P&C Catastrophe Bond Market: 2008-2021YTD
Asia's cat bond & insurance-linked securities market to expand: Fitch
Asia's cat bond & insurance-linked securities market to expand: Fitch
Fitch Ratings expects accelerating CAT bond issuance from Asia’s insurance-linked securities (ILS) domiciles, more CAT bond and insurance-linked securities sponsors to emerge from the region and a gradual increase in use of alternative reinsurance capital in Asia Pacific. “The ILS market will benefit from the prolonged low interest-rate environment, which has prompted reinsurers to adopt alternative capital as a funding source in the past few years,” Fitch explained.
#ART#CAT#ILS
·artemis.bm·
Asia's cat bond & insurance-linked securities market to expand: Fitch
Longevity Derivatives and Financial Instruments Analytical Report
Longevity Derivatives and Financial Instruments Analytical Report
InvestTech Advanced Solutions published a report providing a bird’s eye view, explanation, and analysis of longevity derivatives, including a comparison with other financial instruments. The Report identifies several major trends and insights regarding the landscape of the different types of longevity-derived financial instruments and many other important factors based on a detailed examination of the main users, overall industry dynamics, and market size.
#ART#Longevity
·einnews.com·
Longevity Derivatives and Financial Instruments Analytical Report
Children’s car seat manufacturer completes £30m triple buy-in
Children’s car seat manufacturer completes £30m triple buy-in
"Britax Childcare Group has completed a triple buy-in for its three defined benefit schemes worth £30 million with Just Group. The deal covers around 300 members, or 70 per cent of the children’s car seat and stroller manufacturer’s liabilities, across its three DB schemes – the Britax Childcare Limited Pension Fund, the Jessups Group of Companies Pension and Life Assurance Plan (1973) and the Lloyds Garage Pension Scheme."
#ART#Longevity#Pensions
·pensions-expert.com·
Children’s car seat manufacturer completes £30m triple buy-in
Fujitsu pension scheme completes £7.7m buy-in with Aviva
Fujitsu pension scheme completes £7.7m buy-in with Aviva
"The Fujitsu General (UK) Co Limited Pension and Life Assurance Plan has completed a £7.7 million full buy-in with Aviva. The transaction secures the liabilities of all deferred members, and was carried out in the context of a new covenant and security package put in place for the scheme by its sponsor. The scheme, established in 1979, is in the process of winding up. In May that the ICL Group Pension Plan, a defined benefit scheme also sponsored by Fujitsu, entered a £3.7 billion longevity hedge with Swiss Re."
#ART#Longevity#Pensions
·pensions-expert.com·
Fujitsu pension scheme completes £7.7m buy-in with Aviva
Zenkyoren targets $500m Nakama Re cat bond out of Singapore
Zenkyoren targets $500m Nakama Re cat bond out of Singapore
Zenkyoren, the Japanese National Mutual Insurance Federation of Agricultural Cooperatives, is back in the insurance-linked securities (ILS) market, targeting a $500 million Nakama Re Pte. Ltd. (Series 2021-1) two-tranche catastrophe bond issuance. The indemnity-triggered coverage is set to run across almost five years to October 2026, with three annual aggregate risk periods, each three-years in length, that overlap across the term. The notes to be issued by Nakama Re Pte. Ltd. will be exposed to losses from Japanese earthquakes, including losses from shake and related perils including tsunami’s, fire, flooding and sprinkler leakage.
#ART#CAT#ILS
·artemis.bm·
Zenkyoren targets $500m Nakama Re cat bond out of Singapore
R&Q launches $300m Gibson Re sidecar with investor support
R&Q launches $300m Gibson Re sidecar with investor support
Randall & Quilter (R&Q) Investment Holdings, the specialist non-life insurance and reinsurance legacy investor and program manager, has announced the formation and launch of a $300 million legacy insurance focused collateralised reinsurance sidecar named Gibson Re. The idea is to bring onboard third-party capital to assist in undertaking larger legacy and run-off insurance or reinsurance transactions, leaning on institutional investor appetite for property and casualty insurance-linked returns to enable R&Q to increase its presence in what has become a highly-competitive market segment in recent years.
#ART#CAT#ILS
·artemis.bm·
R&Q launches $300m Gibson Re sidecar with investor support
SCOR launched $100m single-investor worldwide CAT XL sidecar
SCOR launched $100m single-investor worldwide CAT XL sidecar
"It has just come to light that SCOR launched a new $100 million single-investor collateralized reinsurance sidecar in April 2021. This new reinsurance sidecar is structured to provide coverage on a collateralized quota share basis, with the subject business SCOR’s worldwide catastrophe excess-of-loss reinsurance book (worldwide CAT XL)."
#ART#ILS#CAT
·artemis.bm·
SCOR launched $100m single-investor worldwide CAT XL sidecar
Longevity swaps outpace bulk annuities in H1 2021: Aon
Longevity swaps outpace bulk annuities in H1 2021: Aon
The UK market for longevity swaps has outpaced the use of bulk annuities, when it comes to pension risk transfer deals, through the first-half of 2021 and the second-half could also be busy as there is spare capacity in the market to be used, according to Aon. In the first-half of 2021, three large longevity swap transactions totalled almost £13 billion, versus £7.7 billion of bulk annuity deals. Longevity swaps are popular with pension schemes due to their increased flexibility, such as the ease with which they can be converted in future to a full bulk annuities. Also many longevity swaps are now transacted using a segregated cell or special purpose vehicle as an intermediary insurer, allowing pension schemes to more directly transact with sources of reinsurance capital.
#ART#Longevity#Pensions
·artemis.bm·
Longevity swaps outpace bulk annuities in H1 2021: Aon
John Laing agrees £320m deal with Aviva, Artemis finalises full buy-in
John Laing agrees £320m deal with Aviva, Artemis finalises full buy-in
The John Laing Pension Fund has completed a £320 million bulk annuity transaction with Aviva Group, which follows a £211 million buy-in completed in December 2008 that was also with Aviva. The insurer will take in the defined benefit pension liabilities for 1,850 current pensioners, becoming responsible for the investment and longevity risk of these members from the fund. The Artemis (closed) Pension Plan agreed a £19 million full buy-in with Just Group in August 2021. A key factor for the deal’s success was the scheme’s governance – since the plan had a sole trustee who worked closely with the sponsor throughout the transaction – and the scheme’s data and benefit documentation, which were “transaction ready”.
#ART#Longevity#Pensions
·pensions-expert.com·
John Laing agrees £320m deal with Aviva, Artemis finalises full buy-in
The last great risk facing defined benefit pension schemes
The last great risk facing defined benefit pension schemes
With most risks hedged and greatly reduced, longevity risk is now one of the largest remaining risks for many pension schemes. Traditionally, most pension schemes have ignored longevity risk, or sought to manage it through insurance buy-ins or buy-outs. A longevity swap can remove the same amount of longevity risk as buy-ins and buy-outs, but it has the advantage of leaving all of a scheme’s assets available for investment to deal with unexpected shocks that affect the economics of the scheme. However, implementing a longevity swap in practice remains relatively complex and time-consuming. With further standardisation transactions could become less complex, through improved structuring and streamlined legal documentation – which could in turn lead to lower overall legal and advisory costs. And appetite from reinsurers will grow as implementation timelines shorten and demand from pension schemes increases.
#ART#Longevity#Pensions
·pensions-expert.com·
The last great risk facing defined benefit pension schemes