Insurance Linked Investments

Concert Group Holdings, Inc., a privately owned insurance holding company and fronting specialist, has launched and capitalised a new reinsurance sidecar named Harmony Re, Inc., which while termed a risk retention platform is also set to be positioned to attract third-party capital in future as well, Artemis has learned.

Although Christian Bruns, Partner and Portfolio Manager at LGT ILS Partners Ltd., noted that transacting cyber risk in an excess-of-loss format may not currently be in the best interest of the firm’s investors, he highlighted the potential to transact the risk in a quota-share format through its in-house rated reinsurance carrier, Lumen Re.

Essent Guaranty, a wholly owned subsidiary of Essent Group, has successfully closed Radnor Re 2024-1 Ltd., the firm’s tenth issuance of mortgage insurance-linked notes, which upsized and eventually completed at $363.4 million.

Wealth managers at US Bank, the fifth-largest commercial bank in the United States, have highlighted reinsurance and insurance-linked securities (ILS) as diversifying drivers of income for their clients.

After posting record levels of issuance so far in 2024, the catastrophe bond market appears poised to offer an attractive entry point for investors, according to Jack Burdick, an Associate at investment manager Neuberger Berman.

Ledger Investing, the insurtech and casualty insurance-linked securities (ILS) company, has funded and launched a new $100 million casualty sidecar for a global reinsurer, financing the company’s casualty reinsurance business over three underwriting years on a quota share basis.

Interest in private ILS opportunities, so collateralised reinsurance and retrocession arrangements, has been rising and continues to, Marcel Grandi of Twelve Capital believes. He also thinks these instruments afford an investment manager more scope, in terms of investment options beyond catastrophe bonds and tailoring portfolios.

Speaking during the last RenaissanceRe earnings call, CEO Kevin O’Donnell explained that he believes the reset achieved in property catastrophe pricing is proving to be persistent.

Currently, there are attractive returns in all segments of the insurance-linked securities (ILS) universe, and while conditions are expected to remain favourable amid increased demand for protection, there’s still opportunities to innovate and bring more product and capital to market, according to industry executives. At the 66th Rendez-Vous de Septembre (RVS) in Monaco last week, […]

Insurance-linked securities (ILS) such as catastrophe bonds are seen as a versatile and adaptable diversifying strategy that can can provide investors strong, reliable return potential, particularly on a risk-adjusted basis, the Liquid Diversifiers team at WTW has said.