ILS continues to succeed with stable capital and expanded cat bond market: Aon
Despite industry headwinds, the insurance-linked securities (ILS) market continues to succeed, according to Aon’s Alternative Capital: Growing Markets report, which analyses trends in the sector during the 12-month period through June 30, 2022 The report includes commentary and insights on the catastrophe bond market, transaction activity, ILS-related markets – such as Industry Loss Warranties (ILW), sidecars and […]
Data shows industry loss warranty price trends. AM Best says ILW capacity rising
We’ve developed an industry-loss warranty (ILW) pricing data set from information we’ve gathered over the years, as well as recent input from our market sources that helped validate this new Artemis data service. For the moment, we have pricing on three specific triggers for industry-loss warranties (ILW’s), $50bn industry loss attachments for US earthquake, US wind […]
Alternative capital market poised to resume growth trend: Moody’s
A positive pricing momentum for reinsurance will help alternative capital – capital from investors in the form of collateralized reinsurance, catastrophe bonds and reinsurance sidecars – to restart growth after five years of poor returns, according to a recent Moody’s report. Over the past 15 years, alternative capital has grown from approximately $22bn at year-end […]
Alternative reinsurance capital could be more relevant than ever: S&P
Alternative capital could be “more relevant than ever” in the global reinsurance industry and has a chance to grow, at a time when reinsurers are looking to manage their volatility more tightly and pulling-back in some quarters such as catastrophe risks, according to S&P Global Ratings. In updating its analysis of the global reinsurance sector, […]
Reinsurance capital shrinks, ILS market share grows to 15%: Gallagher Re
Alternative reinsurance capital, so the capacity deployed through insurance-linked securities (ILS) structures including catastrophe bonds, has remained relatively flat since 2021, but with traditional reinsurance capital having shrunk, the ILS market’s share has increased, according to Gallagher Re. In a report released today, broker Gallagher Re highlights the decline in traditional reinsurance market capital, as […]
TehranRe sets up with Insurance-Linked Securities’ ambitions
A new reinsurer has been established in Iran’s capital called Tehran Reinsurance Company, which launches with around USD 20 million of capital, and which has ambitions to offer services for a local insurance-linked securities (ILS) market. After Iranian regulators approved the launch of TehranRe in March 2021, the firm reached an agreement in principal for […]
Reinsurers divided on natural catastrophe risk: S&P
S&P Global Ratings has said that global reinsurers are parting ways on natural catastrophe risk, with half growing their exposure in this area over the course of the year. Meanwhile, the S&P said that the remainder are taking a more cautious and defensive stance by reducing their exposure. The firm said that this divergence in […]
Santam passes most of $257m flood loss to reinsurers
South African insurer Santam has reported its results for the first six months of 2022, which include a gross exposure of R4.4 billion (USD 257 million) to flooding in the KwaZulu-Natal province. However, the company’s net impact from the floods was limited to R566 million (USD 33 million) thanks to its reinsurance program, meaning reinsurers […]
Asia-Pacific reinsurers can use ILS capital to compete with global peers: AM Best
Reinsurance companies in the Asia Pacific region can leverage insurance-linked securities (ILS) and alternative capital to capture hardening market opportunities and become more competitive with their global peers, rating agency AM Best has advised. Alternative capital and insurance-linked securities (ILS) can help to make regional reinsurers more competitive in their home countries and also globally, […]
Reinsurance – Defensive, with a cycle hardening tailwind: Goldman Sachs
Equity analysts from investment bank Goldman Sachs have, perhaps unwittingly, laid out a thesis for insurance-linked securities (ILS) investing in their latest research report on the global reinsurance market, which they laud for its defensive investment properties and note has very positive tailwinds at this time. The analysts are commenting on the prospects for the […]