Insurance Linked Investments

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, ended 2023 with just over US $9 billion in ILS assets under management, as a slight uplift in capital deployed in euro terms and currency rates lifted AUM to a […]

To attract more capital to the insurance and reinsurance market, including through insurance-linked securities (ILS) opportunities, there is a need for a greater focus on investor needs and delivering transparency, something Lloyd’s CFO Burkhard Keese said his employer is working towards.

The nascent cyber catastrophe bond and insurance-linked securities (ILS) market must grow to support the need for cyber insurance coverage, as traditional reinsurance risk tolerances are reached and the capital markets provides the perfect alternative, speakers at our recent ILS NYC 2024 conference explained.

Mt. Logan Re Ltd., the Everest Group owned and operated third-party investor capitalised reinsurance sidecar-like investment structure, has strengthened its investor relations team with the addition of two key hires.

Fitch Ratings believes that the trend of net outflows that has been seen across insurance-linked securities (ILS) funds and structures that allocated capital directly to private reinsurance and retrocession arrangements is now over, with assets now deemed more stable, suggesting a chance of more consistent growth is ahead.

Aki Hussain, Chief Executive Officer (CEO) of insurer Hiscox, expects continued outflows from the firm’s insurance-linked securities (ILS) business in 2024, but with new money starting to come in and with Hiscox set to supplement the business with its own capital, the expectation is for net portfolio growth this year.

Having seen its investments into insurance-linked securities (ILS) shrink in value since 2017 saw the market impacted by a string of more significant catastrophe loss years, the pension fund of global beverage and food giant the Coca Cola Company has experienced a more positive year in 2023, with the value of its ILS investments increasing.

Hiscox Group had a particularly busy end to the year in the insurance-linked securities (ILS) space, with a new collateralised reinsurance sidecar and its first catastrophe bond fund launched, while its Hiscox ILS fund management unit also raised an additional $140 million of new capital for the January renewals and doubled its fee income.

The average return of insurance-linked securities (ILS) funds tracked by the Eurekahedge ILS Advisers Index reached 1.16% for January 2024, which was a “particularly high” performance for what is often a slower month lacking in peak peril seasonality.

By the end of February, the dedicated mutual catastrophe bond fund strategy offered by investment manager Amundi US, the Pioneer Cat Bond Fund, had grown its assets under management to reach $218 million, while delivering its investors an almost 15.9% one-year return.