ILS Capital Management

Investor appetite for insurance-linked securities (ILS) continues to grow, but the asset class must evolve structurally to sustain momentum, address friction points like trapped capital, and engage a broader investor base, according to Rudy D’Cunha, Global Head of Insurance Services at Apex Group.

Resolute Global Partners, a registered investment advisor focused on niche opportunities in the insurance and reinsurance space and formerly known as ILS Capital, has aligned with broker Gallagher Re and catastrophe modeller Karen Clark & Company (KCC) to launch a new reinsurance product named Footprint.

One of the insurers partnered with by Bermuda headquartered ILS fund and investment manager Resolute Global Partners, (formerly ILS Capital Management) has made a high-profile CEO appointment, with Don Matz, previously of Floridian insurer Tower Hill joining its Producer’s National Corporation.

Prospero Re Ltd., the rated reinsurance vehicle of Bermuda headquartered ILS fund and investment manager Resolute Global Partners, (formerly ILS Capital Management), has made a senior appointment to its Board in securing the services of well known insurance and reinsurance industry leader Martin Reith.

The New Mexico Educational Retirement Board, a near $13.5 billion pension fund for the state of New Mexico’s education sector employees, is reported to have allocated an additional $25 million to insurance-linked securities (ILS) fund manager ILS Capital Management.

Demonstrating the robust returns possible in the insurance-linked securities (ILS) market currently, through allocations to diversified reinsurance portfolios, Bermuda headquartered ILS fund and investment manager ILS Capital Management said its investors stand to earn higher returns this year.

Bermuda headquartered ILS fund and investment manager ILS Capital Management Ltd. is adjusting the operating model of its reinsurance vehicle Prospero Re Ltd. to add an element of leverage, while retaining the benefits of collateralized coverage.

While loss creep, trapped collateral and the general ongoing impacts from prior year reinsurance related catastrophe losses continue to plague the insurance-linked securities (ILS) market, it’s important to remember that the asset class can still deliver significant value, in terms of investor returns.

While negative performance of ILS and collateralized reinsurance portfolios has been the talk of recent months, after the consecutive years of catastrophe loss activity, as ever performance is divergent in this market and ILS Capital Management was one of those that fared better in 2018.

When much of the coverage of ILS discusses lower returns of ILS and catastrophe bond investments, Bermuda-based asset manager ILS Capital Management Ltd. provides an example of just how attractive insurance-linked investments can be with a 19.7% post-fees return in 2014.