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RenaissanceRe (RenRe) issued a $250 million Mona Lisa Re Ltd. (Series 2021-1) single-tranche four-year bond. It will cover losses from U.S., Puerto Rico, U.S. Virgin Islands and D.C. named storms and earthquakes, as well as Canada earthquakes. The deal was upsized from the original $150 million, and at 7% was priced at the lowest end of the guidance range that earlier this week was tightened from a 7.5% to 8.25% range to 7% to 7.5%.

The Givaudan UK Pension Plan has completed a £64m buy-in transaction with Aviva. The defined benefit scheme of the multinational fragrance manufacturer, based in Switzerland, closed to future accrual in 2016 and is now on a derisking journey.

State Farm issued $300 million Merna Re II Ltd. (Series 2021-2) of three-year notes covering losses from New Madrid earthquake events on an indemnity trigger and per-occurrence basis. It was State Farm's second issuance in just two months, thirteenth cat bond issuance under the Merna Re name.

The Ridgeon Group Pension and Life Assurance Scheme has completed a £50m buyout with Legal & General. The transaction was made possible because additional capital was provided by the original owners of the sponsoring company. Prior to the buyout, the scheme’s strategic asset allocation stood at 100 per cent cash, handled by Legal & General Investment Management. The scheme also had a buy-in policy with L&G.

The Ladbrokes Pension Plan has agreed a full buyout worth £420m with Rothesay Life. The scheme purchased a full buy-in policy with Rothesay Life in June 2019, which it is now converting to a full buyout. The deal is due to be completed in July 2021. This buyout will provide plan members with individual annuity policies, issued by Rothesay Life, which will pay their pension benefits in full.

Bermuda-based Arch Capital is now looking to issue $125 to $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, pricing guidance ranged from 17% to 17.75%, but it has now tightened to 17% to 17.25%.

Swiss Re is now looking to issue between $100 and $125 million new Vita Capital VI Limited (Series 2021-1) single-tranche 3.5-year mortality catastrophe bonds (versus the original $75 million revealed last week). The covered areas are Australia, Canada, the UK and the United States. This mortality cat bond was first marketed to investors with a suggested coupon of 3% and this has apparently not changed. The last Vita Capital mortality cat bond, a $100 million deal that only covered excess mortality events in Australia, Canada and the UK, was issued in 2015 but has now matured.

White Rock Insurance (SAC) Ltd. has issued the ¥7.5 billion of two-year single-tranche principal-at-risk notes. It is assumed that the notes cover Japanese earthquake losses, likely to on a parametric trigger basis, based on previous Asagao issues.

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%.

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%.

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.

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.

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.

“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.”

"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."

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.

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.

"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."

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.

"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."

"The pensions risk transfer market will pick up for the last six months of 2021 with an expected strong pipeline after a subdued first half, according to Legal & General and Willis Towers Watson."

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.

"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."

"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."

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.

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.

"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."

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.

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.

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