Insurance Linked Investments

Nephila Capital, the flagship insurance-linked securities (ILS) fund management operation owned by Markel Corporation, has experienced another 8% decline in assets under management during the fourth-quarter of 2022, with the total falling to $7.2 billion.

The leadership at RenaissanceRe, the global reinsurance firm and third-party capital manager, expects fee income from the Capital Partners and related insurance-linked securities (ILS) capital management business will trend higher this year, as the unit’s scale and AuM increases.

Speed to market is a key characteristic of Bermuda’s ILS market, but when setting up your ILS vehicle, it is also important to consider what happens at the end of its economic life, says Louise Charleson, Partner, Ocorian Law (Bermuda) Limited.

With the key January reinsurance renewals having been challenging and characterised by reduced capacity and higher pricing, the focus can often turn to buying hedges such as industry-loss warranties (ILW’s), but a new study highlights some issues investors should be aware of.

Oxbridge Re Ltd., a Cayman Islands based reinsurance firm, has launched an initiative through which it aims to sponsor the issuance of digital or tokenized reinsurance securities, that will be used to raise capital and support collateralized contracts underwritten via its sidecar, Oxbridge Re NS.

RenaissanceRe, the global reinsurance firm and third-party capital manager,raised an additional almost $403 million of capital from third-party investors in time for the January 2023 renewal season, with the vehicles benefiting being its DaVinci Re sidecar and its catastrophe bond fund Medici.

As we move into 2023, the cyber insurance linked securities (ILS) market is expected to see real traction, as demand for capacity continues to outstrip supply, while data and models are improving, according to Brittany Baker, Vice President of Solution Consulting, CyberCube.

Some of the side-pockets established by insurance-linked securities (ILS) funds in the wake of hurricane Ian are now being reduced in size, as estimates from the storm continue to trend lower than originally expected, according to Artemis’ sources in the ILS investment community.

Stone Ridge Asset Management, the New York based asset manager an alternative risk premia focus, including reinsurance and insurance-linked securities (ILS), has launched Proof Insurance Solutions, a managing general agent (MGA) with a focus on underwriting risks from the blockchain and digital asset sectors.

Catastrophe bonds look set to be the winners of the current market dynamics in insurance-linked securities (ILS), with strong demand expected for their protection and as investment assets, but Tanja Wrosch of Credit Suisse Insurance Linked Strategies cautions that issuance must be “on investors’ terms.”