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UK-based Beazley issued $100 million Fuchsia 2023-1 Rule 144A single-tranche three-year catastrophe bonds using the Lloyd’s owned London Bridge 2 PCC Limited insurance-linked securities (ILS) platform. They will cover losses from named storm and earthquake events affecting the United States, Canada and certain parts of the Caribbean on an indemnity and per-occurrence basis. [Artemis]

U.K.-based Inigo is looking to issue at least $100 million Montoya Re Ltd. (Series 2024-1) single-tranche three+-year catastrophe (CAT) bonds. They will cover losses from U.S. named storms, and North American earthquakes on an annual aggregate basis, featuring a PCS industry loss index trigger. [Artemis]

U.S.-based Texas Farm Bureau Insurance Companies is looking to issue at least $255 million Fish Pond Re Ltd. (Series 2024-1) single-tranche three-year catastrophe (CAT) bonds, versus the original target of $200 million. They will cover losses from named storm reinsurance protection in Texas, on an indemnity trigger and per-occurrence basis. [Artemis]

U.S.-based ARX Holding, the Progressive-owned parent of American Strategic Insurance Group, issued $70 million Bonanza Re Ltd. (Series 2023-2) single-tranche one-year catastrophe (CAT) bonds, versus the original $50 million target. They will cover losses from U.S. named storms, earthquakes, severe thunderstorms, winter storm, and wildfires, on an indemnity and annual aggregate basis. [Artemis]

Munich Re's Eden Re II Ltd. collateralized reinsurance sidecar privately placed $28.5 million of Series 2024-1 Class A four-year participating notes. These sidecars enable Munich Re to share its underwriting returns (and losses) with investors.

Netherlands-based NN Group transferred €13 billion in longevity risk associated with pension liabilities in the Netherlands to an insurance subsidiary of U.S.-based Prudential Financial and Swiss Re. The transactions cover the longevity risk of approximately 300,000 policies. Prudential will cover more than 200,000 of them via a $9.2 billion (€8.4 billion) longevity risk transfer agreement. [Artemis]

U.S.-based The Hartford issued $200 million Foundation Re IV Ltd. (Series 2023-1) single-tranche three-year catastrophe (CAT) bonds. They will cover losses from U.S. named storms and earthquakes on a an indemnity trigger and per-occurrence basis. [Artemis]

U.S.-based Allstate is looking to issue $200 million Sanders Re III Ltd. (Series 2024-1) single-tranche four-year catastrophe (CAT) bonds. They will cover personal lines property and auto losses from named storm, earthquake, severe weather, wildfire, volcanic eruption, or meteorite impact events, across all US states excluding Florida, on a per-occurrence and indemnity trigger basis. [Artemis]

Texas Farm Bureau Insurance issued $255 million Fish Pond Re Ltd. (Series 2024-1) single-tranche three-year catastrophe (CAT) bonds, versus the original target of $200 million. They will cover losses from named storms in the state of Texas on an indemnity trigger and per-occurrence basis. [Artemis]

Chubb issued $150 million East Lane Re VII Ltd. (Series 2024-1) single-tranche two-year catastrophe (CAT) bonds, versus the original $100 million target. They will cover widespread cyber loss events, on an indemnity trigger and per-occurrence basis. [Artemis]

This IMF Global Financial Stability Note studies the growing trend of private equity (PE) investments into the life insurance industry. PE companies' investments in life insurers are integral to their strategic growth as PE firms evolve beyond the traditional leveraged buyout transaction to acquire diverse businesses across private credit, structured credit, private real estate funds, and private infrastructure funds. This note reviews the growth in PE investments through the lens of the diverse acquisition incentives and strategies, the consequent changes to asset allocation and investment strategies of the acquired life businesses, and potential prudential and policy implications.

Ark Insurance, a subsidiary of White Mountains Insurance, sponsored a renewal of its $250 million Outrigger Re Ltd. collateralized reinsurance sidecar, which will assume 2024 global property catastrophe excess-of-loss reinsurance business from Ark. $120 million of its capital is coming from third-party investors, versus $45 million in 2023, with White Mountains contributing the rest. [Artemis]

U.K.-based Pension Insurance Corp. has concluded a £25 million full buy-in of the Westminster Abbey pension scheme. The buy-in insures the pension liabilities for 125 pensioners and 107 deferred members who were employees of Westminster Abbey. Westminster Abbey itself is based in the center of London. The current building was built in 1245 and houses the tombs of various English monarchs, and has been a UNESCO World Heritage site since 1987. [Pensions & Investments]

Hiscox Group issued $125 million Ocelot Re Ltd. (Series 2023-1) single-tranche three-year catastrophe (CAT) bonds, versus the original $100 million target. They will cover losses from US and Canadian named storm and earthquakes on an annual aggregate and weighted PCS industry-loss trigger basis. [Artemis]

According to AM Best and Guy Carpenter, outstanding global third-party reinsurance capital (e.g., insurance-linked securities) ended 2023 at $100 billion (versus $96 billion at the end of 2022), versus $461 billion (versus $411 billion) traditional capital. “Dedicated reinsurance capital... bounced back in 2023, aided by strong underwriting and investment earnings and the unwinding of the significant mark-to-market investment losses that hit the sector hard in 2022.” [Artemis]

U.K.-based Inigo issued $100 million Montoya Re Ltd. (Series 2024-1) single-tranche three+-year catastrophe (CAT) bonds. They will cover losses from U.S. named storms, and North American earthquakes on an annual aggregate basis, featuring a PCS industry loss index trigger. [Artemis]

Alternative reinsurance capital, largely deployed in insurance-linked securities (ILS) formats, saw strong growth in the third quarter of 2023 to end that period at a record high of $103 billion, versus $532 million of traditional reinsurance capital, according to Aon. [Artemis]

Aetna is looking to issue $200 million Vitality Re XV Ltd (Series 2024) two-tranche four-year health insurance catastrophe (CAT) bonds. They will cover losses from tail medical claims events on an indemnity trigger basis. The first Vitality Re deal was sponsored by Aetna back in 2010 and the health and medical insurer has returned every year since then, with this Vitality Re XV Ltd. deal now its fifteenth. [Artemis]

Munich Re's Eden Re II Ltd. collateralized reinsurance sidecar privately placed $121.5 million of Series 2024-1 Class B four-year participating notes. This is the second of two tranches placed, the first being $28.5 million of Series 2024-1 Class A four-year participating notes reported earlier. These sidecars enable Munich Re to share its underwriting returns (and losses) with investors. [Artemis]

GeoVera Insurance is looking to issue at least $100 million Veraison Re Ltd. (Series 2024-1) single-tranche three-year catastrophe (CAT) bonds. They will cover losses from US earthquakes on an indemnity trigger and per-occurrence basis. [Artemis]

Florida-based Tower Hill Insurance Exchange is looking to issue at least $200 million Winston Re Ltd. (Series 2024-1) two-tranche three-year catastrophe (CAT) bonds. They will cover losses from named storm losses in Florida, on an indemnity and per-occurrence basis. [Artemis]

U.K.-based Just Group has made a £1.5 million full pension plan buy-in transaction for the trustees of the Intersil Ltd. Superannuation Fund. Intersil Ltd. is a subsidiary of Renesas Electronics, a Japanese semiconductor manufacturer. [Pensions & Investments]

The Guilbert UK Retirement Benefits Plan has completed a £140m full scheme buy-in with Aviva, securing the benefits of all members. The bulk purchase annuity (BPA) transaction was completed in August and has insured the liabilities of 1,500 members of the scheme - which is sponsored by Office Depot UK Pension Sponsor. [Professional Pensions]

U.S.-based Allstate issued $400 million Sanders Re III Ltd. (Series 2024-1) single-tranche four-year catastrophe (CAT) bonds, versus the original $200 million target. They will cover personal lines property and auto losses from named storm, earthquake, severe weather, wildfire, volcanic eruption, or meteorite impact events, across all US states excluding Florida, on a per-occurrence and indemnity trigger basis. [Artemis]

Hannover Re (via Kaith Re Ltd.) issued five (probably identical) tranches of Seaside Re one-year private catastrophe (CAT) bonds totaling $59 million. They will cover U.S. property catastrophe risks losses. [Artemis]

Aetna issued $200 million Vitality Re XV Ltd (Series 2024) two-tranche four-year health insurance catastrophe (CAT) bonds. They will cover losses from tail medical claims events on an indemnity trigger basis. The first Vitality Re deal was sponsored by Aetna back in 2010 and the health and medical insurer has returned every year since then, with this Vitality Re XV Ltd. deal now its fifteenth. [Artemis]

Many of the UK’s largest liability-driven investment (LDI) managers are updating stress tests designed to predict the impact of market moves on initial margin and posted collateral. It’s an attempt to address shortcomings in these models that were exposed by the gilt crisis. In September 2022, the UK government’s mini budget triggered a spiralling doom loop of falling gilt prices and rising margin calls. Pension funds were forced to sell off long-dated inflation-linked gilts to raise cash to post as variation margin on derivatives and leveraged repo positions. As margin calls increased, gilts that had been posted as collateral were falling in value. And as the value of the collateral fell, managers needed to post more of it to cover their exposures. It was a scenario that hadn’t been factored into some LDI firms’ stress tests. [Risk.net]