Inigo targets second cat bond with $100m Montoya Re 2022-2 issuance
UK-based Inigo Insurance is looking to issue at least $100 million Montoya Re Ltd. (Series 2022-2) single-tranche 2.5-year CAT bonds. They will cover peak perils of U.S. named storms, U.S. and Canada earthquakes on an annual aggregate basis, triggered by a PCS industry loss index
Big dollar deals push PRT market to expected new record — report
The U.S. pension risk transfer market experienced an estimated $27 billion in volume in the third quarter, which should lead to a new annual record exceeding $50 billion, according to Legal & General. During the third quarter, IBM purchased group annuity contracts from Prudential and Metropolitan Life Insurance Co. to transfer a total of $16 billion in U.S. pension plan liabilities. Other deals included Alcoa's August purchase of group annuity contracts from two Athene Holding subsidiaries to transfer about $1 billion in U.S. pension plan liabilities.
The TT Group (1993) Pension Scheme, sponsored by electronic technologies provider TT Electronics, has completed a £400 million buy-in with Legal & General, securing the benefits of around 5,000 retirees and deferred members.
PartnerRe & Zurich back £1bn longevity swap for Fortune 500 pension
An unnamed UK pension scheme sponsored by a Fortune 500 company has completed a £1 billion longevity swap with PartnerRe acting as reinsurer and Zurich acting as the intermediary to the swap. The transaction covers both pensioner and non-pensioner members, and insures the majority of the risk that members live longer than expected.
USAA upsizes ResRe 2022-2 cat bond to $195m, priced at top-end
USAA, the U.S. primary mutual insurer, upsized from $150 million to $195 million its Residential Reinsurance 2022 Limited (Series 2022-2) two-tranche four-year CAT bond issue. They will provide USAA with indemnity and per-occurrence based reinsurance protection, covering it against losses from multiple US perils.
Liberty Mutual targets $125m Mystic Re IV 2023-1 cat bond issuance
US-based Liberty Mutual is looking to issue at least $125 million Mystic Re IV Ltd. (Series 2023-1) single-tranche three-year CAT bonds. It will cover losses from named storms and earthquakes affecting the US, Canada and the Caribbean, on a per-occurrence and indemnity trigger basis.
Allstate lifts Sanders 2022-3 cat bond target to $125m, at ~14% higher pricing
Allstate has upsized its issuance target for its Sanders Re III Ltd. (Series 2022-3) single-tranche four-year four-month CAT bonds from $100 million to $125 million. They will cover coverage against losses from US named storms, earthquakes, severe weather events, wildfires, volcanic eruptions and meteorite impacts, all on a per-occurrence and indemnity trigger basis, and excluding Florida.
The £13 million Musicians’ Union Permanent Officials and Staff Pension Fund has agreed a full buyout with Aviva. Aviva will now insure the defined benefit pension liabilities for all members.
Allstate settles for $100m Sanders 2022-3 cat bond at 10x multiple
Allstate issued $100 million Sanders Re III Ltd. (Series 2022-3) single-tranche four-year four-month CAT bonds. They will cover coverage against losses from US named storms, earthquakes, severe weather events, wildfires, volcanic eruptions and meteorite impacts, all on a per-occurrence and indemnity trigger basis, and excluding Florida.
AmFam targets $100m+ Four Lakes Re 2022 multi-peril cat bond
American Family Mutual Insurance Company is looking at least $100 million Four Lakes Re Ltd. (Series 2022-1) single-tranche three-year CAT bonds. They will cover losses from named storms, earthquakes, severe thunderstorms, winter storms and wildfires across the United States on an indemnity trigger and per-occurrence basis.
Balfour Beatty Pension Fund conducts £1.7 billion longevity swap
UK-based Balfour Beatty Pension Fund, London, agreed to a £1.7 billion longevity swap with SCOR and Zurich Assurance. The £3 billion defined benefit fund manages £3 billion and covers 27,000 participants. The longevity swap covers 15,000 participants. SCOR will take on 100% of the longevity risk, while Zurich U.K. will act as an intermediary insurer through a "pass-through" structure that facilitates the risk transfer to SCOR.
U.S. corporate pension plan buyout sales totaled $26.1 billion in the quarter ended September 30, the highest volume for a third quarter, a LIMRA survey found. It also brings the year-to-date volume of buyout sales to $41 billion, breaking the previous annual record of $36 billion in 2012 in just the first three quarters of the year. LIMRA projects the total volume for 2022 will exceed $50 billion. The third quarter a $16 billion group annuity purchase by IBM from Prudential Insurance of America and Metropolitan Life Insurance.
L&G Retirement America completes $145m pension risk transfer deal with Rolls-Royce
Legal & General Retirement America has completed a $145 million pension risk transfer transaction with Rolls-Royce North America. The deal, which closed in July, covered approximately 1,200 plan participants.
Inigo lifts Montoya Re 2022-2 cat bond target to $110m, as price moves to top-end
UK-based Inigo Insurance increased its issuance target for its Montoya Re Ltd. (Series 2022-2) single-tranche 2.5-year CAT bonds from $100 million to $110 million. They will cover peak perils of U.S. named storms, U.S. and Canada earthquakes on an annual aggregate basis, triggered by a PCS industry loss index.
Inigo secures new Montoya Re cat bond at $110m and top-end price
UK-based Inigo Insurance issued $110 million Montoya Re Ltd. (Series 2022-2) single-tranche 2.5-year CAT bonds, up from the original $100 million target. They will cover peak perils of U.S. named storms, U.S. and Canada earthquakes on an annual aggregate basis, triggered by a PCS industry loss index.
Sompo International sponsoring $100m Sakura Re 2022 cat bond
Sompo International is looking to issue $100 million or more Sakura Re Ltd. (Series 2022-1) single-tranche three-year CAT bonds. They will cover losses relating to US and Canadian from named storms and earthquakes, with a dual-trigger based on a PCS industry loss index, providing per-occurrence retro reinsurance protection for earthquake risks and annual aggregate for named storms.
RenRe targets $150m Mona Lisa Re cat bond for itself and DaVinci Re
RenaissanceRe is looking to issue $150 million or more Mona Lisa Re Ltd. (Series 2023-1) two-tranche three-year CAT bonds, to cover risks in its own portfolio and that of its flagship partner capital vehicle DaVinci Re. They will cover losses related to U.S., Puerto Rico, U.S. Virgin Islands, and D.C. named storm and earthquake protection, as well as protection for Canadian earthquakes, based on a PCS industry loss index trigger. A $75 million tranche will provide per-occurrence protection, and the other will provide annual aggregate reinsurance.
Robinson & Sons scheme completes £44mn full buy-in
The UK-based Robinson & Sons Limited Pension Fund has agreed a full buy-in of its £44 million of pension scheme liabilities with Legal & General. The deal will cover all pensions for the scheme’s approximately 500 members and eligible dependents. The purchase of the policy will be financed entirely using existing assets held within the scheme, which is in surplus.
Coats U.K. Pension Scheme sews up $429 million in liabilities with Aviva
Coats U.K. Pension Scheme completed a £350 million buy-in with Aviva. The transaction, which covers 3,700 members, is intended to set the scheme on a journey towards full insurance.
CEA gets $305m of quake reinsurance with Ursa Re II 2022-2 cat bond
The California Earthquake Authority (CEA) issued $305 million Ursa Re II Ltd. (Series 2022-2) two-tranche three-year CAT bonds. It will cover losses related to California earthquakes on an indemnity and annual aggregate basis.
Co-operative Pension Scheme completes £1.2bn full section buy-in
The £11.8 billion Co-operative Pension Scheme’s £2.1 billion Bank Section has completed a full £1.2 billion buy-in with Rothesay covering all liabilities for 2,474 pensioners and dependents and a further 6,531 deferred members in the "Bank" section. The insurance policy was purchased using existing assets held within the section.
Three Eclipse Re deals take 2022 private cat bond issuance to $720m
Eclipse Re Ltd., has listed three private cat bond issues; $10 million of Series 2022-04A notes, $13.875 million of Series 2022-05A notes, and just over $5.662 million of Series 2022-07A notes. Little else is known about them.
Progressive's ARX Holding seeks $125m Bonanza Re multi-peril cat bond
Progressive's ARX Holding is looking to issue $125 million or more Bonanza Re Ltd. (Series 2023-1) two-tranche CAT bonds. The Class A notes will provide ARX with indemnity and per-occurrence protection for named storm losses for three years. The Class B notes will provide multi-peril aggregate reinsurance protection over just a single year for losses from US named storm, earthquake, severe thunderstorm, winter storm, and wildfire events.
Liberty Mutual hopes to upsize new Mystic Re cat bond to $150m
US-based Liberty Mutual is looking to upsize its Mystic Re IV Ltd. (Series 2023-1) single-tranche three-year CAT bond issue from $125 million to $150 million. It will cover losses from named storms and earthquakes affecting the US, Canada and the Caribbean, on a per-occurrence and indemnity trigger basis.
RGA in $1.7bn longevity swap & reinsurance with Western & Southern
Reinsurance Group of America (RGA) has completed a $1.7 billion longevity risk transfer arrangement that featured a swap and reinsurance provision for US-based Western & Southern Financial Group. It covers roughly 11,000 single premium immediate annuity contracts.
GeoVera secures debut Veraison Re catastrophe bond on-target at $150m
GeoVera Insurance issued $100 million Veraison Re Ltd. (Series 2023-1) two-tranche three-year CAT bonds. It covers US earthquake-related losses on a per-occurrence basis.
Liberty Mutual secures raised $150m target for new Mystic Re cat bond
US-based Liberty Mutual issued $150 million Mystic Re IV Ltd. (Series 2023-1) single-tranche three-year CAT bond issue (up-sized from the originally targeted $125 million). It will cover losses from named storms and earthquakes affecting the US, Canada and the Caribbean, on a per-occurrence and indemnity trigger basis.
Nearly three-quarters of DB reviews end in closure to accrual
Eighty-eight per cent of companies reviewed their DB benefits in 2022, per consultancy Aon’s survey of more than 330 schemes, covering all DB pension benefit reviews until September 2022. For 72 per cent of those companies, the reviews led to closure to future accrual – up from 68 per cent in 2020. Twelve per cent of employers made no changes, compared with 15 per cent in 2020. Sixteen per cent of employers elected to maintain future DB accrual, but made changes to reduce costs. Ninety-four per cent of DB schemes are closed to new entrants, Aon said. Of those that remain open to accrual, 22 per cent are open because they have few active members left, with the same proportion citing “regulated industry/protections” for being open.
Ark sponsors $250m Outrigger Re sidecar. White Mountains is main investor
Ark Insurance Holdings, a property and casualty insurance and reinsurance subsidiary of the White Mountains Insurance Group, has sponsored a $250 million collateralized reinsurance sidecar Outrigger Re. The quota share arrangement will provide reinsurance protection on a portion of Ark Bermuda’s global property catastrophe reinsurance portfolio, from on January 1st 2023.
