Insurance Linked Investments

Howden Tiger, the reinsurance arm of the Howden Broking Group, has brought together its Legacy and Investment Banking operations under the combined leadership of Jarad Madea, CEO, Howden Tiger Capital Markets & Advisory (HTCMA).

The market for cyber insurance-linked securities (ILS) continues to develop, but as cyber insurance itself has not faced a catastrophic loss yet, AM Best believes the use of capital to buffer underwriting operations may end up revisited, when any major loss event occurs.

In a new report, rating agency Moody’s Investors Service has highlighted the much improved outlook for reinsurance-linked returns, through its comments on the big four reinsurers.

Insurance-linked securities (ILS) investment manager Twelve Capital has adopted a defensive stance in the face of the market volatility caused by the financial market upheaval, although the company believes insurers are much better positioned than banks at this time.

The crisis being seen in banking sectors, most prominently with the failure of Silicon Valley Bank and sale of Credit Suisse to UBS, is not a crisis of the insurance sector, and there are no fundamentals to support the recent revaluation of insurance debt, Plenum Investments has stated.

The “denominator effect” and investor rebalancing across asset classes has driven some of the biggest challenges for the insurance-linked securities (ILS) market in recent months, Chris Parry, Global Head of Capital Partners at RenaissanceRe, told us in our latest Artemis Live interview.

The insurance-linked securities (ILS) market is seen as at a crossroads in the wake of hurricane Ian, although ILS capacity has still expanded and the catastrophe bond market is seen as the best positioned segment, rating agency AM Best has said.

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.