Insurance Linked Investments

A recent poll of insurers in the United States, undertaken by broker Aon’s Capital Advisory division, found that within those carriers’ capital management plans for 2025, insurance-linked securities (ILS) and third-party reinsurance capital solutions are a significant feature.

Even with a few consecutive years of ~10% pricing declines, the global property catastrophe reinsurance market can still deliver strong returns to reinsurers as long as terms, attachments and conditions all remain stable, analysts at JMP Securities have said, which would also presumably read across to third-party capital investors.

Commenting on the recent announcement from MetLife, Inc. that it plans to launch Chariot Reinsurance, a new Bermuda based company that will initially act as a kind of sidecar for the company, S&P Global Ratings has highlighted how these structures provide efficient access to “on-demand” capital for their sponsors.

As the running-off of the exchange listed CATCo Reinsurance Opportunities Fund, the stock exchange listed retrocessional reinsurance strategy operated by Markel CATCo, completed this year, the company has now revealed that the net asset value of the shares rose 52% just this year as additional positive loss development was experienced.

After a field trip to Bermuda analysts at TD Cowen have concluded from their discussions with reinsurance and insurance-linked securities (ILS) market participants on the island that property catastrophe rates are coming under some pressure from retained earnings in the sector, as well as from the catastrophe bond and ILS market.

Today we have four more expert speakers to announce for our upcoming Artemis ILS NYC 2025 conference in New York on February 7th next year, but we also want to remind you that the Early Bird rate expires in just over one week, so please register soon to secure your ticket to attend the event.

Having previously indicated that it was cautious on reinsurance market conditions and undecided as to whether to add to its insurance-linked securities (ILS) investments for the January 2025 renewals, the Florida State Board of Administration now appears set to move forwards and increase its allocation to the sector.

The catastrophe bond and insurance-linked securities (ILS) market is expected to see healthy demand from investors in 2025, but the firmness and trajectory of pricing in the sector, and more broadly in reinsurance, remains less certain, according to Mark Gibson of Schroders Capital.

Hamilton, the Bermuda based insurance and reinsurance holding company, has continued to earn positive performance fees from activities under its Ada Capital Management third-party capital platform and its Ada Re collateralized reinsurance and retrocession underwriting vehicle, in the third-quarter of this year.

Icosa Investments catastrophe bond fund strategy that was launched at the start of this year has now reached a new milestone in surpassing US $300 million in assets, as success in raising inflows continued in recent months.