Insurance Linked Investments

Insurance-linked securities (ILS) focused insurtech company Vesttoo has hired its first Head of Underwriting, selecting a respected executive from its local market in Israel to fill the role.

Reinsurance companies in the Asia Pacific region can leverage insurance-linked securities (ILS) and alternative capital to capture hardening market opportunities and become more competitive with their global peers, rating agency AM Best has advised.

After a first-half during which returns from catastrophe bond investments have been depressed, although still much better than many other asset classes, Swiss Re Capital Markets expects that cat bond fund returns will “recover strongly” through the second-half of 2022.

Spreads in the secondary market for catastrophe bonds began to widen towards the levels seen for primary cat bond transactions as the first-half of the year drew to a close, broker-dealer Aon Securities has said.

A collateralized insurer class of company has now officially been registered in Bermuda, with Vesttoo Alpha P&C Ltd. set to play a pivotal role in the companies platform and offering of P&C insurance returns to investors.

The lines between third-party capital, so that allocated by investors and often structured into insurance-linked securities (ILS), and traditional insurance and reinsurance capital, are continuing to blur.

Insurance-linked securities (ILS) fund managers have been working to free trapped capital related to possible COVID pandemic related losses in European reinsurance contracts, with commutations being pursued, AM Best has reported.

Aon Insurance Managers (AIM), the unit of the global insurance and reinsurance broker that deals with insurance management, including of commercial, captive and insurance-linked securities (ILS) vehicles, has expanded the roles of two well-known executives to encompass additional global responsibilities.

Equity analysts from investment bank Goldman Sachs have, perhaps unwittingly, laid out a thesis for insurance-linked securities (ILS) investing in their latest research report on the global reinsurance market, which they laud for its defensive investment properties and note has very positive tailwinds at this time.

The trend of increased new issuance volume in catastrophe bonds is expected to continue, with positive growth of the cat bond market expected as a result, according to Swiss Re Capital Markets.