Insurance Linked Investments

The catastrophe bond market is expected to generate investors as much as $17.61 billion in cash through 2024, from a combination of coupon payments and maturities, Aon Securities has estimated, which alongside inflows should be ample to help in absorbing what could be another record year of issuance.

Analysts at Goldman Sachs have noted that 2024 is going to be a year where they will be focusing on the potential for inflows of alternative capital or new entrant formation to change the dynamic across reinsurance and specialty insurance markets.

After its government expressed its desire to attract more insurance-linked securities (ILS) sponsors to the Hong Kong Special Administrative Region, highlighting a commitment to develop its ILS market, executives from the Insurance Authority have made filling protection gaps a key focus of its ILS ambition.

Insurer and reinsurer Aspen Insurance Holdings Limited, and asset manager PIMCO, have announced the launch of Pando Re Ltd., a Bermuda-based, casualty focused collateralised re/insurer that act as a reinsurance sidecar and help to drive growth of third-party capital and fee income for Aspen Capital Markets.

Banque Bonhôte & Cie, a Swiss private bank, investment firm and wealth manager, has announced the launch of a new environmental, social and governance (ESG) focused fund strategy that will incorporate catastrophe bonds as one of its allocations.

When it comes to designing a reinsurance sidecar structure for a life insurer, ensuring alignment is strong across all parties involved is critical, while trade-offs between a sidecar strategy and simply trading with traditional reinsurers must also be assessed, according to RGA (Reinsurance Group of America).

Asset manager Schroders Capital has added Jason Kezelman and Loren Sageser to its Private Debt and Credit Alternatives (PDCA) business, which was launched in October 2023 with Stephan Ruoff and Michelle Russell-Dowe as Co-Heads.

The arrival of the world’s first cloud outage catastrophe bond was viewed very positively, and provides investors with a new avenue into the cyber insurance-linked securities (ILS) space, according to Henning Ludolphs, Managing Director Retrocession and Capital Markets at Hannover Re.

The Ambassador mutual catastrophe bond fund strategy has continued to grow its assets under management in recent months, adding $63.3 million since we last reported on it, to reach $191 million in net assets under management.

The giant more than $9 billion portfolio of insurance-linked securities (ILS) and reinsurance investments managed by PGGM, the Dutch pension investment manager that allocates the largest amount to the insurance-linked securities (ILS) market on behalf of end-client the Dutch pension PFZW, delivered a record 18.9% return in 2023.