Insurance Linked Investments

A number of mortgage insurance-linked securities, or mortgage insurance-linked notes, transactions have had their credit ratings upgraded, as the fundamentals related to them improved on faster pay-downs have helped to build up credit enhancement associated with them.

One of the insurance-linked securities (ILS) sponsored by financial guarantee and municipal bond specialist Build America Mutual Assurance Company has had its ratings upgraded, while another has been affirmed, as the chance of losses being faced has decreased on quicker than scheduled amortisation of the underlying business.

Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company, has agreed and signed a memorandum of understanding (MOU) to develop a $100 million ILS fund in partnership with Saudi Arabia based investment institution ANB Capital.

Gallagher Re CEO James Kent is being promoted to a new Gallagher group role that will see him helping to further the firm’s activities in helping clients access diverse sources of risk finance, and investors access insurance risk as an asset class.

The insurance-linked securities (ILS) market is moving to a place where the non-cat component can expand, and if the market wants to grow over the long-term, more risk will need to come in, according to industry experts.

Two new senior hires have joined Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company.

The average spread across newly issued catastrophe bonds has now reached an all-time-high in 2023, as data recorded by Artemis now shows that both the average coupon and the average spread above expected loss of cat bonds entered in the Artemis Deal Directory this year are at record levels.

Catastrophe bond funds in the UCITS format have reported very strong returns year-to-date, with the average return across the main UCITS cat bond strategies now reaching 2.62% as of March 3rd.

Alpina Capital, the asset manager that took over the management and distribution of the Falcon Private Bank catastrophe bond funds, has hired Dr. Gregor Gawron, an experienced executive in the insurance-linked securities (ILS) space and a former manager of that cat bond strategy a decade ago.

K2 Advisors, the hedge fund focused investment management unit of Franklin Templeton, is bullish on the outlook for the catastrophe bond market in 2023, but longer-term believes investor needs must continue to be met.