Insurance Linked Investments

The relatively short time taken for catastrophe bond investments to recover after loss events and crises affecting global markets has been impressive throughout the sector’s history, with cat bonds exhibiting a tendency to recover from draw-downs much faster than other asset classes.

Catastrophe bond, insurance-linked securities (ILS) and reinsurance investment manager Twelve Capital has grown its asset base through the first-quarter of 2023, reaching a new level of $4.2 billion of firm-wide assets under management.

The portfolios of reinsurance and retrocessional risk transferred to the capital markets, through catastrophe bonds and other insurance-linked securities (ILS), in 2023 are potentially the cleanest ever seen, while record cat bond issuance is a possibility this year, K2 Advisors has said.

As we’ve been reporting for some weeks now, there is increasing evidence in the way catastrophe bonds are pricing that rates for reinsurance and retrocessional coverage from the cat bond market are now coming off the top of the hard market.

We’ve learned from sources that a number of insurance-linked securities (ILS) fund managers have recently been able to further reduce the size of investment side pockets they had established related to hurricane Ian.

Judy Klugman, the Global head of ILS Distribution and Sales at reinsurance giant Swiss Re and a long-standing and well-known leader in the catastrophe bond and insurance-linked securities (ILS) space, is departing the firm at the end of June.

Aspen Capital Markets, the third-party and alternative reinsurance capital management unit of global re/insurer Aspen, had a successful year in 2022, growing its assets under management by 42% to reach $1.3 billion over the twelve months.

The insurance-linked securities (ILS) grant scheme in Singapore has been a significant help in the country attracting catastrophe bonds and other ILS activity and it has now been extended by a further three years, to run until the end of 2025.

With an improved reinsurance market outlook, new capital is now expected to flow in once earnings delivery has been confirmed in reported results, Aon’s Mike Van Slooten has said.

Hiscox Re & ILS, the international reinsurance and insurance-linked securities (ILS) arm of the Hiscox Group, has announced the hiring of Minesh Shah from Hamilton Re, who joins the firm as its Director of Underwriting Risk.