Computershare expands its insurance-linked securities services to support the catastrophe bond market

NEW YORK, September 10, 2024 – Computershare (ASX: CPU) has expanded its insurance-linked securities (ILS) products to support the catastrophe (‘cat’) bond market as trustee and paying agent.

The global financial services company said that its extensive experience in collateralized reinsurance meant it was well-positioned to provide cat bond trustee and paying agent services to insurance and re-insurance companies, asset managers at hedge, pension and mutual funds as well as to banks and other financial institutions.

Computershare’s paying agent services will align with US business hours to ensure fast, same business day response times, personalized client service and immediate support.

The company said that ‘cat’ bonds were increasingly popular among investors, with more than $12.1 billion of new cat bond issued during the first half of 2024.

Notably, ‘cat’ bonds have extended their coverage to include topics such as cyber-security risks, the company added.

Some commentators have noted that cat bonds, typically independent of financial markets and
economic conditions, may provide investors with stable interest payments during periods of market volatility, potentially serving as a hedge against economic and market risks.

“Supporting cat bonds as a trustee and paying agent is a natural expansion of our current role in the ILS market, and this new collateralized reinsurance product is also part of our ongoing efforts to provide corporate trust clients with enhanced offerings,” said Michael Alfano, Vice President, Sales for US Corporate Trust, Computershare.

“Drawing upon the broad experiences and in-depth knowledge of our corporate trust team, we aim to provide top notch services to our clients – and a significant advantage across the US.”

For more information about Computershare Corporate Trust services, click here.

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