Axa chooses not to renew cat bond

France-based insurer Axa S.A. is not renewing its property catastrophe bond – Calypso – for 2018 due to improved traditional reinsurance pricing and the high cost of sponsoring cat bonds, Artemis.bm reports. The insurer said that the cost of retrocession reinsurance coverage has become more equal between traditional and alternative sources, however the added cost and effort for setting up a cat bond and the required legal overhead makes insurance-linked securities less attractive. European property catastrophe reinsurance and retrocession from traditional sources remain cheaper, while cat bonds are more effective in the United States and Japan, Axa added.

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