Insurance Linked Investments

News on the growing market in insurance and reinsurance linked investments, covering insurance-linked securities (ILS) such as catastrophe bonds and collateralized reinsurance, with a particular focus on the ILS fund market.

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Arch closes new mortgage ILS at best pricing, broadest investor participation

Arch Capital Group, the Bermuda headquartered specialty insurance and reinsurance company, said today that its mortgage insurer arm, Arch Mortgage Insurance Company (Arch MI), has secured $616 million of reinsurance across its latest $523 million Bellemeade Re 2021-2 Ltd. mortgage ILS deal and a direct placement of another $93 million read the full article →

Lloyd’s Central Fund cover has no direct ILS participation

There isn't any direct participation from insurance-linked securities (ILS) funds or investors in the £650 million reinsurance or retrocession protection Lloyd's has purchased to cover its Central Fund, despite nearly 70% of it being collateralised. As we explained earlier this morning, Lloyd's has secured an innovative cover for its Central Fund read the full article →

Lloyd’s secures £650m Central Fund cover, £450m of it collateralised

Lloyd's, the London insurance and reinsurance marketplace, has secured a £650 million cover for its Central Fund, with £450 million of it provided by an investment bank and fully collateralised, according to a report. The FT reported first this morning that Lloyd's has taken the plunge and secured a reinsurance or read the full article →

“Measured growth” expected for Elementum in 2021: White Mountains CEO

White Mountains is anticipating "measured growth" in 2021 from the insurance-linked securities (ILS) fund manager Elementum Advisors in which it holds a significant interest, according to its CEO Manning Rountree. White Mountains acquired a stake in ILS fund manager Elementum Advisors in May 2019. The company paid $55 million for its 30% read the full article →

Cat bond activity may give multi-strategy funds room to expand

The acceleration of activity in the global catastrophe bond market over the last few months could now drive an opportunity for a number of multi-strategy investment funds to expand, as the availability of paper has increased even causing some investment managers to lift the shutters on closed funds, we understand. Which read the full article →

Higher prices driving stabilisation of peak US wind exposures

Major insurance and reinsurance companies that had been pulling-back on peak US wind over recent years are being seen to stabilise their exposures in reaction to the higher-priced opportunity coastal risk presents, according to analysts and our sources. The prolonged softening of property catastrophe reinsurance rates over almost a decade up read the full article →

Essent seeks its largest mortgage ILS yet, with $558m Radnor Re 2021-1

Essent Guaranty is back in search of more capital markets backed reinsurance protection with its latest and sixth mortgage insurance-linked securities (ILS) transaction, which will be its largest yet if the almost $558 million Radnor Re 2021-1 Ltd. issuance is successful. This Radnor Re 2021-1 issuance of mortgage insurance-linked securities (ILS) read the full article →

Arch seeks $523m of mortgage reinsurance with Bellemeade Re 2021-2 ILS

Arch Capital Group, the Bermuda headquartered specialty insurance and reinsurance company, is back in the capital markets with its second mortgage insurance-linked securities (ILS) transaction of the year, as it targets around $523 million of reinsurance with this Bellemeade Re 2021-2 Ltd. deal. This will actually be the sixteenth mortgage insurance-linked read the full article →

ILS fund manager participation moving up the reinsurance tower

In our discussions with managers of insurance-linked securities (ILS) funds and other collateralized reinsurance structures around the mid-year renewal season, one fact that has become increasingly clear is that many ILS fund managers are taking the opportunity supplied by the improved rate environment to move higher up the risk tower. One read the full article →

Fronted ILS capital only a “small share” of NZ EQC’s $7bn renewal

Traditional reinsurance capacity continues to dominate the reinsurance program of New Zealand’s state-owned residential property disaster insurance entity the Earthquake Commission (EQC), with fronted capacity from alternative or ILS markets only contributing a "small share" in 2021. As we explained recently, the New Zealand Earthquake Commission (EQC) placed its largest reinsurance read the full article →