Insurance Linked Investments

White Mountains has reported significantly improved performance from its investments into the ILS funds managed by Elementum Advisors in 2023 to the end of April, while also explaining again the ILS market conditions are highly attractive at this time.

As the capital markets, insurance-linked securities (ILS) specialist managers and institutional investors get more familiar and comfortable with investing in cyber insurance risk, there is a chance we see a new breed of more tech-led investors emerge and become a core of the cyber ILS asset class, Gallagher Re believes.

Strategic Risk Solutions, Inc. (SRS), an independent provider of insurance, reinsurance and captive management and consulting services, has announced the hiring of Charles ‘Chuck’ Scherer in Bermuda, as the firms insurance-linked securities (ILS) ambitions continue to expand.

Hudson Structured Capital Management Ltd. (HSCM), the insurance, reinsurance and transportation focused investment manager, has participated in a seed funding round for cryptocurrency denominated Bermuda life insurance start-up Meanwhile.

Vesttoo, the insurance-linked securities (ILS) focused financial technology company, has renewed a capital market backed casualty quota share reinsurance arrangement at an upsized $120 million over the prior year, for a leading Lloyd’s syndicate.

Catastrophe bond funds in the UCITS format are averaging approximately 6.20% returns year-to-date in 2023, while over a 12-month horizon the average return is now 3.57%, even accounting for major hurricane Ian’s losses in Florida.

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.