Insurance Linked Investments

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.

Aeolus Capital Management Ltd., the Bermuda based reinsurance and insurance-linked securities (ILS) investment fund manager, has announced the promotion of long-standing team member Fergus Morrison to Partner at the firm.

Speaking this morning in Monte Carlo executives from global reinsurance firm Hannover Re said that the Vesttoo issues with allegedly fraudulent letters of credit (LOC) is an “eye opener” but not systemic and they see no impact to their own pipeline of business in the insurance-linked securities (ILS) market.

Reinsurance broker Guy Carpenter has said that, while insurance-linked securities (ILS) investors and ILS funds fear financial market correlation emerging after a widespread cyber attack event, they shouldn’t fear the risk of a “double-whammy” from the risk side and their investments in other asset classes.

Speaking today in Monte Carlo at the annual reinsurance market Rendez-Vous de Septembre event, Thomas Blunck, a Member of the Board of Management at global reinsurer Munich Re, said he does not expect major capital inflows to either the traditional or alternative sides of the market.

Because the current hard market in reinsurance is largely focused on the shorter-tailed lines of business, like property catastrophe risks, Taoufik Gharib, Senior Director at S&P Global Ratings, said today in Monte Carlo that capital may choose to enter through sidecars or collateralized reinsurance instead of new reinsurer startups.

Speaking this morning at an event in Monte Carlo for the 2023 Reinsurance Rendez-Vous, analysts at Fitch Ratings said that the Vesttoo scandal may push investors in insurance-linked securities (ILS) to focus on the safety of structures and the security of collateral.

Acrisure Re, the reinsurance broking unit of the Acrisure group, has announced its expansion into the catastrophe bond market, with the hiring of two experienced insurance-linked securities (ILS) executives in Zurich, Sandro Kriesch and Patrick Witteveen.