148 ZJ Taylor
Decades-long experiments in capitalising Florida insurers through ILS
and other reinsurance instruments have made Sunshine State hurricane
wind risk a well-established asset class, for which there exists a significant
depth of industry, investor, and regulator familiarity. The geographical
specificity of Florida’s crisis-prone mode of urbanisation, and the industry’s role and response in developing instruments like ILS to hedge against
such crisis, helps to foreground how and why Singapore’s first full-fledged
catastrophe bond issuance should come to be underpinned by Florida residential hurricane wind risk.
Singapore: Regionalising risk capital
Surveying Singapore’s glass-and-steel financial district skyline from a highrise conference room, a reinsurance executive recounted the collaborative
efforts of state and industry actors to construct a local ILS trading centre
in the city-state, which raised just short of $1 billion of catastrophe coverage between the first such issuance in 2019 and mid-2020 (Table 11.2). The
executive detailed how, over the course of years of dialogue and through
the roll-out of market-making infrastructures, the foundation was laid for
Table 11.2 Singapore-based ILS transactions, May 2019–June 2020.
Bond issuance
Cover
(millions) Peril(s)
Sponsor
First Coast Re II Pte.
Ltd. (Series 2019-1)
$100
Florida-named storm &
severe thunderstorm
Security First Insurance
Co (Florida)
Manatee Re III Pte.
Ltd. (Series 2019-1)
$40
US-named storm &
severe thunderstorm
(Florida, Louisiana,
New Jersey & Texas)
Safepoint Insurance Co
(Florida)
Integrity Re II Pte.
Ltd. (Series 2020-1)
$150
Florida-named storm
American Integrity
Insurance Co (Florida)
via Hannover Rück SE
(Germany)
Akibare Re Pte. Ltd.
(Series 2020-1)
$100
Japan typhoon & flood Mitsui Sumitomo
Insurance Co (Japan)
Catahoula Re Pte. Ltd.
(Series 2020-1)
$60
Louisiana-named storm
& severe thunderstorm
Louisiana Citizens
Property Insurance
Corporation
(Louisiana)
Casablanca Re Pte.
Ltd. (Series 2020-1)
$65
Florida-named storm
Avatar Property and
Casualty Insurance Co
(Florida)
Alamo Re II Pte. Ltd.
(Series 2020-1)
$400
Texas-named storms &
severe thunderstorms
Texas Windstorm
Insurance Association
(Texas)
Source: Artemis.bm Deal Directory.
Decades-long experiments in capitalising Florida insurers through ILS
and other reinsurance instruments have made Sunshine State hurricane
wind risk a well-established asset class, for which there exists a significant
depth of industry, investor, and regulator familiarity. The geographical
specificity of Florida’s crisis-prone mode of urbanisation, and the industry’s role and response in developing instruments like ILS to hedge against
such crisis, helps to foreground how and why Singapore’s first full-fledged
catastrophe bond issuance should come to be underpinned by Florida residential hurricane wind risk.
Singapore: Regionalising risk capital
Surveying Singapore’s glass-and-steel financial district skyline from a highrise conference room, a reinsurance executive recounted the collaborative
efforts of state and industry actors to construct a local ILS trading centre
in the city-state, which raised just short of $1 billion of catastrophe coverage between the first such issuance in 2019 and mid-2020 (Table 11.2). The
executive detailed how, over the course of years of dialogue and through
the roll-out of market-making infrastructures, the foundation was laid for
Table 11.2 Singapore-based ILS transactions, May 2019–June 2020.
Bond issuance
Cover
(millions) Peril(s)
Sponsor
First Coast Re II Pte.
Ltd. (Series 2019-1)
$100
Florida-named storm &
severe thunderstorm
Security First Insurance
Co (Florida)
Manatee Re III Pte.
Ltd. (Series 2019-1)
$40
US-named storm &
severe thunderstorm
(Florida, Louisiana,
New Jersey & Texas)
Safepoint Insurance Co
(Florida)
Integrity Re II Pte.
Ltd. (Series 2020-1)
$150
Florida-named storm
American Integrity
Insurance Co (Florida)
via Hannover Rück SE
(Germany)
Akibare Re Pte. Ltd.
(Series 2020-1)
$100
Japan typhoon & flood Mitsui Sumitomo
Insurance Co (Japan)
Catahoula Re Pte. Ltd.
(Series 2020-1)
$60
Louisiana-named storm
& severe thunderstorm
Louisiana Citizens
Property Insurance
Corporation
(Louisiana)
Casablanca Re Pte.
Ltd. (Series 2020-1)
$65
Florida-named storm
Avatar Property and
Casualty Insurance Co
(Florida)
Alamo Re II Pte. Ltd.
(Series 2020-1)
$400
Texas-named storms &
severe thunderstorms
Texas Windstorm
Insurance Association
(Texas)
Source: Artemis.bm Deal Directory.