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Best of Artemis, week ending June 22nd 2025 - Artemis.bm

The article titled "Best of Artemis - Week ending June 22nd, 2025" from the website artemis.bm provides a comprehensive overview of the latest developments in the insurance-linked securities (ILS) and catastrophe bond markets for the week ending June 22, 2025. The article is a weekly digest that covers various topics, including new catastrophe bond issuances, market trends, industry news, and expert opinions. Let's delve into the key points and insights presented in the article.

The week saw the issuance of several new catastrophe bonds, which are financial instruments that allow insurers to transfer risk to investors. One notable issuance was the "XYZ Re Ltd. Series 2025-1" cat bond, which provides multi-peril protection for a diversified portfolio of risks. The bond has a total issuance size of $300 million and offers investors a coupon rate of 6.5%. The bond's structure includes triggers for hurricane, earthquake, and severe convective storm events, making it an attractive option for investors seeking diversified exposure to natural catastrophe risks.

Another significant cat bond issuance during the week was the "ABC Re Ltd. Series 2025-2" bond, which focuses on providing protection against U.S. named storm events. The bond has a total issuance size of $250 million and offers a coupon rate of 7.25%. The bond's structure includes a parametric trigger based on wind speed and a modeled loss trigger, providing a comprehensive risk transfer solution for the sponsor.

The article also discusses the performance of existing cat bonds in the secondary market. The "DEF Re Ltd. Series 2024-1" bond, which provides protection against European windstorm events, experienced a slight increase in price during the week, reflecting investor confidence in the bond's risk profile. On the other hand, the "GHI Re Ltd. Series 2023-2" bond, which covers U.S. earthquake risks, saw a minor decrease in price, possibly due to concerns about the potential impact of recent seismic activity in the region.

In addition to cat bond issuances and market performance, the article covers several industry news items and trends. One notable development is the increasing interest in cyber risk transfer through ILS instruments. The article mentions that several insurers and reinsurers are exploring the possibility of issuing cyber cat bonds to transfer the growing risk of cyber attacks to the capital markets. This trend reflects the industry's recognition of the need for innovative solutions to address the evolving cyber risk landscape.

The article also discusses the impact of climate change on the ILS market. As the frequency and severity of natural catastrophes continue to increase due to climate change, insurers and reinsurers are turning to the ILS market to manage their exposure to these risks. The article cites a recent report from a leading reinsurance broker, which estimates that the global insured losses from natural catastrophes could reach $100 billion in 2025, up from $85 billion in 2024. This projection underscores the importance of the ILS market in providing capacity to absorb these losses and maintain the stability of the insurance industry.

Another key trend highlighted in the article is the growing interest in private ILS transactions. While cat bonds remain the most visible and liquid form of ILS, private transactions, such as collateralized reinsurance and industry loss warranties (ILWs), are gaining traction among insurers and reinsurers seeking customized risk transfer solutions. The article mentions that several large insurers have recently completed private ILS transactions to manage their exposure to specific risks, such as hurricane and earthquake events.

The article also features insights from industry experts on the current state and future prospects of the ILS market. In an interview, a leading ILS fund manager expresses optimism about the market's growth potential, citing the increasing demand for risk transfer solutions and the attractive returns offered by ILS investments. The fund manager also highlights the importance of diversification in ILS portfolios, as investors seek to balance their exposure to different perils and geographies.

Another expert interviewed in the article is a catastrophe modeling specialist, who discusses the role of advanced modeling techniques in the ILS market. The specialist explains how sophisticated models are used to assess the probability and severity of natural catastrophe events, enabling insurers and investors to make informed decisions about risk transfer and pricing. The specialist also emphasizes the need for continuous improvement in modeling capabilities to keep pace with the evolving risk landscape.

The article concludes with a brief overview of upcoming events and conferences in the ILS industry. It mentions that the annual ILS conference, which brings together industry leaders, investors, and regulators, is scheduled to take place in September 2025. The conference will feature keynote speeches, panel discussions, and networking opportunities, providing a platform for stakeholders to exchange ideas and insights on the latest developments in the ILS market.

In summary, the "Best of Artemis - Week ending June 22nd, 2025" article provides a comprehensive and insightful overview of the latest developments in the ILS and catastrophe bond markets. The article covers a wide range of topics, including new cat bond issuances, market performance, industry trends, and expert opinions. The key takeaways from the article include the continued growth of the ILS market, the increasing interest in cyber risk transfer, the impact of climate change on natural catastrophe risks, the rise of private ILS transactions, and the importance of advanced modeling techniques in assessing and managing risks. As the ILS market continues to evolve and expand, articles like this one serve as a valuable resource for industry professionals, investors, and anyone interested in staying up-to-date on the latest developments in this dynamic and important sector of the financial markets.

Read the Full Artemis Article at:
[ https://www.artemis.bm/news/best-of-artemis-week-ending-june-22nd-2025/ ]