Archive for November, 2013

Institutional hedge fund and equity investment managers have taken stakes in Bermuda-based reinsurer Third Point Reinsurance Ltd. The hedge-fund type reinsurer clearly resonates with large hedge funds such as Citadel and equity focused managers like Cambiar, both of which hold large stakes.

The appeal of reinsurance and insurance-linked securities (ILS) as an alternative asset class continues to grow among multi-asset fund managers. These funds provide diversified ways to invest across multiple asset classes, and reinsurance is increasingly popular due to its low-correlation.

The two catastrophe bonds issued during the month of October went some way towards satisfying a little of the excess demand for insurance-linked securities (ILS) and as a result stimulated some rebalancing of investors secondary cat bond portfolios during the month.

A new report published today by BNY Mellon looks at the potential for growth in the catastrophe bond market and suggests that it could double in five years to $50 billion as reinsurers and capital markets seek to close the gap between economic and insured losses globally.

One of the major trends likely to influence the reinsurance market over the next five to ten years is proactive innovation through insurance-linked securities (ILS), according to reinsurance leaders speaking at a conference in Bermuda over the last two days.

Prime Management Limited, a Bermuda headquartered insurance-linked securities fund administrator and leading service provider to investment structures, sponsors and managers in the ILS market, has been selected to manage a new reinsurance entity by ILS Capital Management.

Blue Capital Reinsurance Holdings, the third-party capital financed collateralized reinsurance subsidiary, has completed its initial public offering (IPO) of shares on the New York Stock Exchange, according to parent company Montpelier Re Holdings.

Capital from alternative and third-party sources as well as the insurance-linked securities (ILS) sector may not yet be making huge waves across Asia but it is firmly on the radar of attendees at the 12th Singapore International Reinsurance Conference this week.

Ratings agency Standard & Poor’s has upgraded or affirmed the ratings on a number of the medial benefit ratio insurance-linked securities (ILS) transactions sponsored by health insurer Aetna after receiving the annual reset results.

Insurance-linked securities and reinsurance-linked investment manager Credit Suisse has released a statement saying that it does not expect any impact from the devastating super typhoon Haiyan, which struck the Philippines, to its IRIS Low Volatility Plus ILS fund.