Insurance Linked Investments

The insurance-linked securities (ILS) desk of Tullett Prebon, part of TP ICAP, will have a new leader, with Josh Stannack set to take on the Head of TP ILS position, and the desk’s founder Steve Emmerson will remain integral to the business in a part-time role.

Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company, has completed its first secondary trade of a casualty insurance-linked securitization (ILS) instrument, with two investors leveraging its software stack to gain sufficient insights into the ILS trade to price the deal and complete the transaction.

During the RenaissanceRe third-quarter earnings call today, CEO Kevin O’Donnell explained that the reinsurance and insurance-linked securities (ILS) industry has to provide returns to its investors and shareholders, or risk capital exiting the space.

The investment results of Nephila Capital’s insurance-linked securities (ILS) fund strategies are tracking expectations, including for the estimate of losses from major hurricane Ian, according to the Co-CEO’s of owner Markel Corporation.

Insurance giant American International Group (AIG) reported that assets under management at its AlphaCat Managers insurance-linked securities (ILS) and collateralized reinsurance investment manager, fell slightly to $3.3 billion at the end of the third-quarter, while investment losses from hurricane Ian are also evident.

Hiscox Group reported its results this morning, saying that net flows to its insurance-linked securities (ILS) funds were broadly stable for the third-quarter, but noting that after hurricane Ian investment sentiment has been impacted to a degree.

RenaissanceRe, the Bermuda headquartered reinsurance and third-party capital management specialist, passed on some $372.4 million of losses to investors in some of its managed reinsurance structures during the third-quarter, with hurricane Ian the main driver.

Nephila Capital, the flagship insurance-linked securities (ILS) fund management operation owned by Markel Corporation, has reported a $700 million decline in net assets, as hurricane Ian’s impacts and losses drove the total down to $7.8 billion.

K2 Advisors, the hedge fund focused investment management unit of Franklin Templeton, has said that in the wake of hurricane Ian it anticipates a “material pricing dislocation” across all segments of insurance-linked securities (ILS), which should lead to an “opportunistic entry point” to the sector for investors.

Catastrophe bond funds, as measured by the Plenum CAT Bond UCITS Fund Indices, appear to have hit the bottom of their hurricane Ian related decline, with a slight gain in the last week reported and we believe more gains to come according to other market signals.