Insurance Linked Investments

Speaking with Artemis in Monte Carlo this morning at the annual Rendez-Vous de Septembre event, Trevor Carvey, CEO of Conduit Re, explained that the reinsurer plans to continue its work in the catastrophe bond space.

Given the strong growth of the catastrophe bond market over the last year and the fact market conditions and investor preferences favour the structure, if these trends continue, Fitch Ratings Senior Director Brian Schneider said he expects cat bonds will become the largest segment of the alternative reinsurance capital market.

This year feels like a watershed moment for the cyber insurance-linked securities (ILS) market, with tangible advances in use of ILS capital to support cyber risk underwriting, while cyber models have reached a level of maturity that promises there is much more to come, Brittany Baker of CyberCube told Artemis.

The insurance-linked securities (ILS) market’s ability to rebound from recent historical losses, resume its growth trajectory and deliver what investors have been looking for, is a true testament to its resiliency and overall value proposition to all stakeholders, Aon has said.

Twelve Capital, the Zurich-headquartered insurance-linked securities (ILS), catastrophe bond and reinsurance investment manager, remains positive on the potential for the private ILS market to continue to recover from its recent historical challenges and intends to launch a new strategy to target the end of year renewal period, Marcel Grandi, Head of ILS Sourcing told Artemis.

Independent reinsurance broker Lockton Re has called for cyber reinsurance to be simplified, saying that this will help to solve the capacity supply for cyber risks, while also opening up capital markets and ILS capacity avenues.

Speaking today in Monte Carlo, senior executives from Swiss Re’s reinsurance business unit explained that the firm’s Alternative Capital Partners (ACP) unit is an area where “consistency and continuity” are key, while the firm sees “zero conflicts” between its ACP investors and its equity holders.

Broker Guy Carpenter is calling for retrocession buying clients to leverage both traditional and alternative sides of the market, in order to “create competitive tension” at the upcoming January 2024 reinsurance renewals and beyond.

Hannover Re’s CEO says that the reinsurance company sees good opportunities in insurance-linked securities (ILS) and intends to leverage its strong position in that marketplace.

Philipp Rüede, Head of Swiss Re’s Alternative Capital Partners (ACP) unit told us in an interview that the outlook for use of alternative capital and for insurance-linked securities (ILS) as an asset class has “significantly improved”, with expected returns now doubled or tripled in some ILS strategies.