ILS a versatile, adaptable midfield player offering strong, reliable returns: WTW
Insurance-linked securities (ILS) such as catastrophe bonds are seen as a versatile and adaptable diversifying strategy that can can provide investors strong, reliable return potential, particularly on a risk-adjusted basis, the Liquid Diversifiers team at WTW has said. Likening the construction of a well-rounded investment portfolio to that of selecting a winning football team, the […]
Central Europe floods could drive insured losses up to $3.3bn, says Gallagher Re
Insured losses from the recent severe floods that struck central Europe, which mainly occurred from September 12-15 are likely to range between EUR 2.0 – 3.0 billion (USD 2.2 – 3.3 billion), according to estimates from reinsurance broker Gallagher Re. A slow-moving low-pressure system caused continuous rainfall across central Europe, leading to severe and costly […]
First ILS structure in Brazil could be Andrina Seguros from IRB RE
The first insurance-linked securities (ILS) structure under Brazil’s regulations for “Letra de Risco de Seguro”, or LRS which translates to Letter of Insurance Risk, could be named Andrina Seguros and sponsored by local reinsurance company IRB RE, according to a report. Brazil has designed its legislative and regulatory framework with domestic market activity first in […]
ILS industry responds to ESMA call for evidence on cat bonds as UCITS eligible assets
The insurance-linked securities (ILS) industry has come together to respond to the European Securities & Markets Authority (ESMA) call for evidence to support a review of the Undertakings for Collective Investment in Transferable Securities (UCITS) Eligible Assets Directive (EAD), highlighting the reasons catastrophe bonds are beneficial assets for investors and suitable assets for UCITS strategies. […]
Cat bonds and sidecars to see biggest increases in demand over next year: Moody’s
Over the next year, reinsurance buyers have expressed a strong preference for catastrophe bonds when it comes to utilising alternative capital, while sidecars are also expected to see much more elevated demand, the latest survey by Moody’s Ratings shows. Each year just in advance of the Monte Carlo Rendez-Vous event, Moody’s Ratings surveys reinsurance buyers […]
Retro strategy differs for Big Four. Cyber cat bonds could be something they all agree on
While the retrocession strategies of Europe’s Big Four reinsurance companies may differ, the still relatively new retro option of sponsoring cyber catastrophe bonds may prove to be an area of commonality between them. It is AM Best that highlights the differences between the retrocession strategies of the four major European reinsurance giants, Hannover Re, Munich […]
Collateralized retrocession use up at global reinsurers, but retro cost put some buyers off: S&P
The use of collateralized retrocession limits has increased among the largest reinsurance companies as alternative capital continues to be a critical source of retro protection, but for some retro buyers the cost of coverage remains too high, S&P Global Ratings has said. In fact, across reinsurance companies analysed by S&P, their January 1st 2024 in-force […]
ILS market growth comes when risk transfer needs are greatest: Pennay, Aon Securities
The surge in catastrophe bond market issuance and resulting insurance-linked securities (ILS) market growth over the last year, came at the right time for the insurance and reinsurance market, meeting their needs for risk transfer, according to Richard Pennay of Aon Securities. Pennay, the CEO of Insurance-Linked Securities at broker Aon’s capital markets and ILS […]
Strong alternative capital supply growth expected in 2025 for cat bonds and ILS: Fitch
Unless there are “substantial” losses to insurance-linked securities (ILS) from catastrophe events in the second-half of 2024, Fitch Ratings said it expects “continued strong supply growth in the alternative reinsurance capital market into 2025.” Fitch Ratings said that returns in catastrophe bonds and other insurance-linked securities (ILS) remain attractive, which has helped to elevate and […]
Trapped capital decline means ILS growth is stronger than you think: AM Best
Over the last couple of years the amount of capital trapped in collateralized reinsurance, retrocession and other insurance-linked securities (ILS) has declined significantly, which makes for a much larger and more impactful ILS capital market than you might think, AM Best rightly points out. ILS managers have been successful in releasing a lot of capital […]