Insurance Linked Securities Interviews

Speaking with Artemis, Brad Adderley, Partner at global law firm Appleby, emphasised that while 2024 may not be a record year for catastrophe bond issuance, it is not a sign of doom and gloom, as the market has already had a strong year despite a subdued third quarter.

Kathleen Faries, CEO of Artex Capital Solutions, has noted that as the insurance-linked securities (ILS) market nears 2025, headline challenges include upholding underwriting discipline, securing long-term profitability, and applying lessons from the past with careful capital management to bolster investor confidence.

Some investors have started to experience benefits from the outperformance of investments in the private reinsurance segment compared to catastrophe bonds, after softening of pricing had been seen in the second quarter, Pascal Koller Partner and Portfolio Manager at LGT ILS Partners Ltd., recently commented.

Bill Dubinsky, CEO of Gallagher Securities, has highlighted that a key challenge for the insurance-linked securities (ILS) market heading into next year will be sustaining the growth momentum seen in 2023 and 2024, given a certain amount of activity this year was deals brought forward that would have otherwise naturally occurred in 2025.

Enstar, the legacy and run-off reinsurance specialist, has developed a flexible finality solution for insurance-linked securities (ILS) investors. With the Forward Exit Option (FOE) already put to work in a recent transaction, Anguel Zaprianov explained to Artemis in an interview that its application potential is broad.

At MS Amlin, there is an ambition to grow and broaden the scope of the innovative Phoenix reinsurance sidecar series of deals, and William Ho, the CEO of MS Amlin Asia Pacific, told us about the opportunity this presents to investors.

Speaking with Artemis in a recent video interview, William Ho, the CEO of MS Amlin Asia Pacific, discussed the innovative Phoenix sidecar series of deals and explained that these challenged the norm of what is typically seen in insurance-linked securities (ILS) and the product has delivered for its investors.

The momentum seen in the catastrophe bond market over the last year is expected to persist, with further growth in the amount of cat bonds outstanding expected by year-end 2024, Shiv Kumar, President of GC Securities told us in an interview.

Although Christian Bruns, Partner and Portfolio Manager at LGT ILS Partners Ltd., noted that transacting cyber risk in an excess-of-loss format may not currently be in the best interest of the firm’s investors, he highlighted the potential to transact the risk in a quota-share format through its in-house rated reinsurance carrier, Lumen Re.

Interest in private ILS opportunities, so collateralised reinsurance and retrocession arrangements, has been rising and continues to, Marcel Grandi of Twelve Capital believes. He also thinks these instruments afford an investment manager more scope, in terms of investment options beyond catastrophe bonds and tailoring portfolios.