Insurance Linked Investments

Recent Atlantic hurricane activity is likely to only drive “limited” losses to top-layer insurance-linked securities (ILS) strategies, such as catastrophe bonds, but will contribute to keeping spreads in the ILS asset class “historically high”, Schroders Capital’s Nils Rode has said.

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.

K2 Advisors, the hedge fund focused investment management unit of Franklin Templeton, has maintained its overweight view on the catastrophe bond and broader insurance-linked securities (ILS) asset class for the fourth-quarter, citing opportunities it sees in the market as well as the still historically high yields that are available.

Recognising that demand for asset and wealth management services are set to increase and that certain alternative asset classes are currently less attractive due to their taxation, the government of Hong Kong aims to boost its investment sector with a broadening of profit tax exemptions, with insurance-linked securities (ILS) one asset class in focus.

With another week of insights gathered on the potential for any losses from hurricane Milton, thanks to industry loss estimates and catastrophe bond pricing, the net asset values (NAVs) of US mutual investment funds that allocate to catastrophe bonds and other insurance-linked securities (ILS) were mostly marked up again at the end of last week.

The broadly diversified portfolio of insurance-linked securities (ILS) and reinsurance investments managed by pension investment firm PGGM on behalf of end-client the Dutch pension PFZW, delivered a 5.8% return for the third-quarter, lifting year-to-date returns to 11.7%.

It’s now clear that catastrophe bond funds fell far less than the market benchmark on the first pricing after hurricane Milton, with the Plenum CAT Bond UCITS Fund Indices only falling 0.42% at Friday October 11th and the majority of cat bond funds absorbing the initial mark-to-market impacts of the storm within two weeks of […]

At Friday’s pricing, the catastrophe bond market index calculated by Swiss Re Capital Markets bounced back by more than one percent, leaving the benchmark for the entire cat bond market now only -0.30% down since hurricane Milton, while the US wind specific version of the cat bond index also recovered and is now -1.31% since […]

In comments made around Guy Carpenter’s Baden-Baden Reinsurance Symposium event, Maria Rapin, the CEO of Nephila Climate, the climate and weather focused arm of insurance-linked securities (ILS) specialist Nephila Capital, highlighted that alternative capital is a long-term partner for reinsurance that has been well-tested through catastrophes and crises.

John Doyle, the President and CEO of Marsh McLennan, parent company to reinsurance broker Guy Carpenter, said just now that because of the recent hurricanes, an impact is expected on property insurance and reinsurance pricing for 2025, while he also said that the catastrophe bond market is expected to see elevated issuance over the coming […]