Insurance Linked Investments

According to market sources, Aeolus Capital Management is expected to be able to provide a significant degree of continuity to its clients at the upcoming reinsurance renewals and throughout 2023.

In the wake of hurricane Ian, the industry loss warranty (ILW) market faces its share of losses, which, alongside broader issues impacting reinsurance and retrocession capital availability, means ILW rates-on-line are now heading for all time highs, according to our sources.

Fidelis Insurance Holdings Limited, the specialty insurance and reinsurance firm launched by Richard Brindle, has now received approval for the planned launch of an MGU and separation of this new underwriting and origination arm from its balance-sheet insurance businesses.

Twelve Capital, the Zurich headquartered investment manager with a focus on insurance-linked securities (ILS), insurance and reinsurance linked investments, has had its Climate Transition Equity Strategy classified under Article 9 of SFDR.

Catastrophe bond funds, as measured by the Plenum CAT Bond UCITS Fund Indices, continued to recover more of the ground lost since hurricane Ian, gaining 0.40% in the last week.

The insurance-linked securities (ILS) market looks particularly attractive for 2023 on the back of rising premiums and tighter control over terms and structures, leading Michael Stahel of LGT ILS Partners to call the opportunity-set “truly exciting”.

Analysts at Goldman Sachs have said that they believe the reinsurance and London market re/insurance names they follow have passed the test set by hurricane Ian, with evidence of the improved rating environment showing in the fact the storm only proved to be an earnings event for the industry.

As of the third-quarter of 2022, global reinsurance giant Hannover Re had expanded its activities in the insurance-linked securities (ILS) and collateralised reinsurance space to include more than 1,500 program participations fronted for.

Allianz Global Corporate & Specialty (AGCS) has announced an impending expansion of its Alternative Risk Transfer team, as the global insurance and reinsurance player continues to expand the use of non-traditional risk transfer and capital solutions for its clients.

Liberty Mutual Reinsurance, the global reinsurance underwriting arm of the US insurance group, has hired an executive with experience of the traditional and alternative or ILS capital sides of the market, appointing Ly Lam to a newly created Chief of Staff position.