Catastrophe bonds and insurance-linked securities news

The insurance-linked securities (ILS) market, for catastrophe bonds, collateralized reinsurance and other insurance-linked investments, is “rapidly approaching an equilibrium” in terms of pricing, supply and demand, according to Validus CEO Ed Noonan.

Heritage Insurance Holdings, Inc., the parent to Heritage Property & Casualty Insurance, has had another stunning result at its reinsurance renewal, providing a glimpse into just how much primary property focused insurers are saving on their risk transfer right now.

The potential financial impact from climate change to the asset management and wider investor landscape is far higher than previously believed, according to a report, highlighting a potential opportunity for the reinsurance and insurance-linked securities (ILS) sector.

American International Group (AIG) has completed a unique (in recent times) insurance-linked securities (ILS) transaction named Bellemeade Re Ltd., which transfers some of its mortgage insurance portfolio risks to capital market investors.

Insurance, reinsurance and capital market or ILS participants can and should be doing more to help bridge the escalating flood risk protection gap in Asia, home to some of the most flood prone areas on the planet which are exacerbated by rising asset values and coastal migration.

Insurance and reinsurance intermediary Aon plc has again cited the uneven deal-flow in the reinsurance convergence space, where its Aon Securities unit is the leader in ILS and capital markets transactions, as a reason for lower reinsurance revenues.

The wealth of alternative capital currently sat in the global reinsurance space provides solutions that supplement existing, traditional coverage, according to Marsh’s U.S. Property Practice Leader, Duncan Ellis.

Intangible, complex risks to economies, insurers and reinsurers around the world are on the rise, owing to globalisation and heightened interconnectedness, signalling a need for greater data on emerging risks, says Lloyd’s of London Chief Executive Officer (CEO), Inga Beale.

Ongoing price pressure in the secondary catastrophe bond market dragged the average return of the insurance-linked securities (ILS) market down to 0.17% in June, a month that saw 15 of the 34 ILS, reinsurance linked and cat bond funds tracked see negative returns.

AlphaCat Managers Ltd., the ILS and third-party capital focused unit of Bermuda headquartered insurance and reinsurance group Validus, has passed the $2 billion mark for the first time, reporting $2.08 billion of assets under management.