Insurance Linked Investments

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.

Hudson Structured Capital Management (HSCM), the reinsurance, insurtech, insurance-linked securities (ILS) and transportation focused investment manager, has financed insurtech homeowners specialist Kin Insurance again, this time as a participant in a $145 million debt capital raise.

The Board of the Plymouth County Retirement Association, a retirement manager that provides pensions and benefits to over 11,500 participants from 24 municipalities, 5 regional schools, 17 housing authorities, and 6 special districts, is seeking an insurance-linked securities (ILS) investment manager for an allocation.

Reinsurance giant Swiss Re is comfortable that it’s treated the investors in its alternative capital structures well, including when it comes to recent hurricane Ian, Group CFO John Dacey has said.

The insurance-linked securities (ILS) market is undergoing a repricing, as it digests its losses from hurricane Ian and the fact more capital will be trapped, in an environment where increasingly there are other investment options available as well, according to Aon President Eric Andersen.

Appleby, the specialist offshore law firm and fiduciary services provider, has announced the return of one of its insurance team, as Gary Harris returns as Partner after a spell with a reinsurance company on the island.

Global reinsurance giant Swiss Re is anticipating a “radical” adjustment in prices at the January 1 renewal season, according to comments from its Chief Financial Officer (CFO) John Dacey this morning.

After hurricane Ian, it’s likely spread widening already seen in the catastrophe bond market only gets wider, which means, alongside rising risk-free returns, cat bond investment yields are set to stay at record levels, Florian Steiger of Twelve Capital has said.

Enhancing the terms and conditions around cyber insurance and reinsurance coverage, especially around cyber warfare and what is excluded from policies, is an important factor that can attract new capacity, including from the capital markets, Claudia Hasse of Munich Re has explained.

According to Goldman Sachs equity analyst team, the “end of free money”, by which they are referring to the end of quantitive easing by Central Banks, is set to have ramifications for reinsurance pricing and also for the insurance-linked securities (ILS) market.