Insurance Linked Investments

European pension and life consolidator Phoenix Group is the latest company focused on this space to consider leveraging investor appetite for insurance-linked returns to bring third-party capital into its business to augment its ability to write more bulk purchase annuity business.

Registration is now open for our next insurance-linked securities (ILS) conference. ILS NYC 2024 will be held in New York City on February 9th 2024, with around 400 attendees from the ILS community expected to come together for a day of thought-leadership, discussion and valuable networking.

While there are many ways to generate alpha for your investors in the insurance-linked securities (ILS) sector, it remains critical to manage investor expectations and avoid delivering unwanted surprises, speakers at Convergence 2023 in Bermuda said last week.

Independent insurance and reinsurance broking group BMS Group has announced the hiring of Andras Bohm from Swiss Re as its new head of U.S. Capital Advisory and the CEO of BMS Capital Advisory, Inc.

Obra Capital, an alternative investment manager with strategies focused on insurance and reinsurance, has entered into a new strategic partnership with another investor with insurance-linked experience, as Aquarian Holdings has bought a minority equity ownership stake in the firm.

Schroder Investment Solutions, a division of the global asset management group Schroders that provides portfolio solutions and management via investment advisers to retail and wealth clients, has launched the Schroder Alternatives Fund, a strategy that looks set to draw on the managers insurance-linked securities (ILS) expertise.

Reinsurance rates and pricing are forecast to “remain harder for longer” in the current elevated interest rate environment, with a reduced supply of alternative capital expected to continue to be a driver, as institutional investors such as pension funds continue managing their allocation limits, analysts at investment bank Berenberg have said.

Speaking at the Convergence event in Bermuda today, Adrian Jones, a former partner at HSCM Ventures, the venture capital business affiliated with Hudson Structured Capital Management, highlighted the artificial intelligence opportunity for the insurance-linked securities (ILS) industry, but also cautioned the ILS sector to take care with data.

It’s become apparent that PGGM, the Dutch pension fund investment manager that allocates the largest amount to the insurance-linked securities (ILS) market on behalf of end-client the Dutch pension PFZW, added a new ILS manager to its allocation list in 2022, with an investment into a fund managed by Integral ILS.

Although there are investors waiting on the side-lines of the insurance-linked securities (ILS) market with an interest in responsible transactions, there’s still a need for a minimum return which outweighs the importance of liquidity and diversification, according to industry experts.