Insurance Linked Investments

Analysts from investment bank Berenberg are estimating as much as $8 billion of alternative reinsurance and insurance-linked securities (ILS) capital has been raised year-to-date, which is a significant amount and far overshadows new capital entering the traditional market.

Twelve Capital, the Zurich-headquartered insurance and reinsurance linked investment manager, is exploring the casualty insurance-linked securities (ILS) space and seeking feedback from its investor clients, as it considers whether to launch a casualty ILS fund offering in future, its CEO Urs Ramseier has said.

With more than two decades of experience in managing third-party reinsurance capital, and the recent creation of its casualty and specialty dedicated vehicle, Bermuda-based RenaissanceRe has become somewhat of a one-stop shop for ILS and reinsurance, according to Chris Parry, Global Head of Capital Partners.

Insurance-linked securities (ILS) capital is increasingly becoming attracted to and getting more comfortable with deploying to cover cyber insurance and reinsurance risks, according to broker Guy Carpenter.

The returns possible in insurance-linked securities (ILS) investments remains at a near record, as the Eurekahedge ILS Advisers Index continues to track at its highest performance level since 2007.

Captive insurance structures are still largely a self-insurance tool for their sponsors, but there is a market there for captives that might look to offload risks, or books of business, towards the end of their lives, David Gibbons of PwC Bermuda told us in a recent video interview.

Helios Underwriting, the Lloyd’s of London focused investment and underwriting vehicle that counts some insurance-linked securities (ILS) market sources among its capital backers, is aiming to expand its business through the rest of this year, with more third-party capital targeted to support the build out of its portfolio.

Palomar Insurance Holdings has purchased a reinsurance tower extending to $2.68 billion for earthquake events, with multi-year ILS capacity from its catastrophe bonds now providing $875 million of limit, thanks to its recently completed fourth cat bond deal.

We’ve learned that Elementum Advisors, LLC, the insurance and reinsurance linked asset manager, has raised $150 million from investors for deployment to opportunities presented by market dislocation at the mid-year renewals.

Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company, is reportedly set to be used as a vehicle through which to source capacity to support UK motor insurtech Pukka as it hunts for new reinsurance capital sources.