Insurance Linked Investments

Aspen Capital Markets, the third-party and alternative reinsurance capital management unit of global re/insurer Aspen, has raised new funds for its third-party capital and insurance-linked securities (ILS) vehicles, taking total assets under management to $1.5 billion at the end of September 2023.

The financial strength ratings of fronting specialist Clear Blue Insurance Insurance Group have been removed from negative watch by AM Best, but the rating agency notes that some uncertainty remains, due to the impacts and effects of the letter of credit (LOC) fraud instigated by employees of insurtech Vesttoo.

Arch Capital Group has cancelled a number of its Bellemeade Re mortgage insurance-linked securities (ILS) arrangements with their notes set to be redeemed later this year, as the re/insurer said that rating changes enacted by S&P have substantially reduced the capital relief the ILS deals supplied.

Plenum Investments AG, the Zurich based specialist insurance-linked securities (ILS) and catastrophe bond investment manager, has grown the assets under management of its mixed catastrophe bond and subordinated insurance debt ILS investment fund to over US $400 million.

Insurtech Nayms has facilitated a first secondary trade of participation tokens on its platform, as two parties traded a participation in what was the first cryptocurrency denominated industry loss warranty (ILW) transaction.

Artex, the captive, alternative risk transfer, insurance-linked securities (ILS) facilitation and capital solutions subsidiary of Gallagher, is set to rebrand all of its cell facilities and transformer offering as Artex Axcell, as it seeks to unify the brand proposition across these important market-facing services.

With the fourth-quarter of the year an important time for the property insurance market, not least as the peak reinsurance renewal season approaches, broking giant Aon has made considering catastrophe bonds the top recommendation for insurers looking to navigate what can be a challenging time.

For global insurance and reinsurance player Everest Group, using its Mt. Logan Re Ltd. third-party capitalised sidecar-like structure is seen as preferable to sponsoring catastrophe bonds or hedging with ILW’s, according to CFO Mark Kociancic.

Marcel Grandi, Head of ILS Sourcing at insurance-linked securities (ILS) and reinsurance asset manager, Twelve Capital, expects price increases to be limited in 2024, but is positive for the future as reinsurers continue to cede a sizeable portion of their exposure to the retrocession market.

Enact Mortgage Insurance has successfully closed on its new mortage insurance-linked securities (ILS) issuance, securing $248 million of collateralized mortgage reinsurance protection from the capital markets with the issuance of Triangle Re 2023-1 Ltd. mortgage insurance-linked notes.