Insurance Linked Investments

Third-party capital in reinsurance, so what would often be termed alternative capital or insurance-linked securities (ILS) market capacity, is now projected to grow by over 3% in full-year 2023, to reach approximately $99 billion by year-end.

Rating agency AM Best believes that in the current hard market cycle, reinsurance companies are likely to preserve their underwriting discipline for longer than in previous cycles, suggesting rates could hold better this time than has been seen in the past.

Vesttoo has stated in filings to the US bankruptcy court, that the joint action begun Friday, by broker Aon’s White Rock Insurance SAC vehicle alongside regulator the Bermuda Monetary Authority (BMA), is in violation of the automatic stay that began with its Chapter 11 filing.

Insurance and reinsurance broking giant Aon through its White Rock Insurance (SAC) Ltd. company is joining forces with the Bermuda Monetary Authority (BMA) to pursue “maximum recovery” for the re/insureds affected by the alleged fraud involving Vesttoo related segregated accounts.

The average return across the group of UCITS catastrophe bond funds has reached a stunning 9.34% as of early August, as cat bond fund strategies continue to deliver outstanding returns in 2023.

The insurance-linked securities (ILS) fund-of-funds strategy launched by Bermuda-based Clarien Investments Limited (CIL), the asset management arm of Clarien Bank, has now allocated to ILS fund strategies managed by Pillar Capital and Neuberger Berman, we’ve learned.

Alongside its filing for Chapter 11 bankruptcy protection in the United States, under-fire insurtech Vesttoo has also filed for insolvency relief under the Israeli court system.

The China Construction Bank (CCB), which is the main bank named in relation to the fraudulent letter of credit (LOC) scandal involving insurtech Vesttoo, grew its activities significantly as an LOC issuing and confirming bank in 2022, rating agency AM Best noted.

You can now view the agenda and session timings for our upcoming catastrophe bond and insurance-linked securities (ILS) market conference, Artemis London 2023 on Tuesday September 5th. Register soon to attend!

The Ambassador Fund, a US mutual investment fund that was launched with a promise to have a core focus on catastrophe bonds, has finally allocated some capital to them in the quarter to April 30th, while also renewing a private ILW arrangement for 2023.