Catastrophe bonds and insurance-linked securities news

Inflows into insurance-linked securities (ILS) funds have increased materially since the second-half of 2020, with catastrophe bond funds leading the way, but a number of other private ILS strategies also raising new capital.

Mr. Simon Lam, Executive Director, General Business at the Hong Kong Insurance Authority, expects the region’s new ILS regime to “hit the ground running” as mainland China’s insurance market growth continues apace.

The ongoing and historic flooding across Europe is very unlikely to have an impact on the catastrophe bond market and insurance or reinsurance market losses will only be a fraction of the overall economic impact, showing the evident flood risk protection gap and the opportunity for cat bonds to help close it, according to Plenum […]

The first catastrophe bond for Jamaica, which as we were first to report ten days ago launched as a $175 million IBRD CAR 130 transaction with the support of the World Bank, is now said by our sources to have a chance of closing a little larger, at $185 million in size.

LGT Capital Partners (LGT CP), the global alternative investments specialist, is bringing a new multi-strategy alternatives investment fund offering to Australia, with insurance-linked securities (ILS) part of its portfolio.

With Singapore now an active hub for catastrophe bonds and insurance-linked securities (ILS) and with Hong Kong primed to issue its first deal this year, regional sponsor participation can help to ensure their sustainability as ILS domiciles, according to Paul Schultz, Chief Executive Officer (CEO) of Aon Securities.

While catastrophe bond and insurance-linked security (ILS) spreads have tightened during the second-quarter of 2021, hedge fund specialist manager K2 Advisors believes that they remain attractive relative to corporate credit and are a strategy investors should be focusing on.

With Hong Kong now established as a regulated domicile for insurance-linked securities (ILS) and catastrophe bonds, there could be several issuances out of the region by the end of 2021, according to Cory Anger, Managing Director of GC Securities.

Fidelis Insurance Holdings Limited, the specialty insurance and reinsurance firm launched by Richard Brindle, has expanded its capital base again thanks to a new strategic investment from an intriguing source, US insurance giant The Travelers Companies Inc.

Were the U.S. Securities and Exchange Commission (SEC) to recognise the maturity of the catastrophe bond marketplace and consider it a public market, it would help both the efficiency and transparency of this part of the insurance-linked securities (ILS) industry, according to Morton Lane.