Insurance Linked Investments

As the insurance-linked securities (ILS) industry looks towards the end of year renewals, Stephan Ruoff of Schroders Capital told us that ILS managers need to maintain clear investment principles, stay disciplined and be judicious in their selection of risks and counterparties.

The first insurance-linked securities (ILS) structure under Brazil’s regulations for “Letra de Risco de Seguro”, or LRS which translates to Letter of Insurance Risk, could be named Andrina Seguros and sponsored by local reinsurance company IRB RE, according to a report.

The life reinsurance industry in Bermuda has embraced the use of third-party capital structures and investor relationships, with sidecars now an established and growing feature of the market, Damian Cooper of PwC Bermuda explained in a recent video interview.

AXA XL, the global specialty insurance and reinsurance unit of the AXA Group, has announced the hiring of experienced reinsurance and ILS executive Chris Caponigro as its new Head of Reinsurance Capital Management.

Independent, licensed insurance manager, Polo Insurance Managers (PIM), offers optionality and a unique proposition, providing independent professional management services to ILS, Commercial and Captive clients, Chief Executive Officer (CEO) Mark Elliott told Artemis at this year’s RVS in Monte Carlo.

Artemis has learned that global reinsurance company Hannover Re is assessing its risk management need in relation to the K-Cessions quota share sidecar for the second year running and we’re told other major reinsurers may also pursue this approach, as companies manage their portfolios and are motivated to retain profitable risks.

Conduit Re, the pure-play reinsurance company, has hired well-known Bermuda market executive Nick Pritchard, who has joined the company as Underwriting Portfolio & Alternative Capital Manager.

Aeolus Capital Management Ltd., the specialist insurance-linked securities (ILS) and reinsurance investment manager, has strengthened its business development and investor relations team with the hiring of former Blackstone and PIMCO executive Maya Henry.

As alternative capital in the reinsurance industry is expected to continue to grow, despite this Moody’s Ratings is not expecting any significant impact to pricing or policy terms for the rest of 2024 and in 2025, believing discipline will remain key for the ILS market.

More Australian pension super funds have begun allocating to insurance-linked securities (ILS), according to Bloomberg, as the publisher names Rest Super and Host Plus as allocating to the space. Artemis has learned that Rest Super has invested with manager Twelve Capital for catastrophe bonds.