Catastrophe bonds, which have delivered high returns to investors, are facing scrutiny due to their complex and rigid payout structures.
Tag: catastrophe bonds
Catastrophe Bonds Based on Models that Often Underestimate Climate Risks
Catastrophe bonds and other insurance-linked securities, which powered last year’s highest-returning hedge fund strategy, are built on calculations that can underestimate a new breed of risk stemming from high-frequency events such as wildfires and thunderstorms, according to veteran investors.
Investors’ Bets on Mother Nature Are Paying Off Big
How much would you need to be paid to cover the risk of the next massive hurricane or earthquake? Investors in the insurance market have a new answer: Way more than they were before.
As Cost of Climate Disasters Grows, Some Investors Profit
Market is booming for insurance-linked securities known as catastrophe bonds.
SageSure and SURE Close Debut $150 Million Multi-Year Catastrophe Bond
SageSure and SureChoice Underwriters Reciprocal Exchange (“SURE”) today announced that SURE, a coastal property reciprocal insurer whose policies are exclusively available through SageSure, has successfully closed a $150 million private placement catastrophe bond transaction. SURE entered into a three-year reinsurance arrangement with Gateway Re Ltd., a newly established Bermuda special purpose insurer, which will provide… Continue reading SageSure and SURE Close Debut $150 Million Multi-Year Catastrophe Bond
Catastrophe Bonds Signal Coronavirus Nearing Pandemic Status
The World Health Organization says the coronavirus isn’t yet a global pandemic. Bonds that insure against just such a catastrophe say that it probably is. The bonds, sold in 2017 by the World Bank to raise money for poor countries in a global pandemic, are quoted as much as 40% below their face value following… Continue reading Catastrophe Bonds Signal Coronavirus Nearing Pandemic Status