Insurance Linked Investments

While the insurance-linked securities (ILS) industry cannot avoid inflationary effects completely, the structures utilised have some tools embedded that allow ILS managers to tame the effects of inflation on their portfolios, according to Dirk Lohmann, Chairman, Schroders Capital ILS.

Global reinsurance company Swiss Re has appointed a Head of Portfolio Management at its new catastrophe bond focused SEC registered investment adviser, Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC).

Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company, has appointed its first Chief Actuary, taking Anand Khare from insurer Chubb.

According to the latest estimate and forecast for dedicated reinsurance capital from rating agency AM Best and broker Guy Carpenter, overall reinsurance market dedicated capital is expected to shrink, as traditional capacity falls, but ILS or third-party capital rises.

In recent months, if you’re interested in insurance-linked securities (ILS) or active in the ILS marketplace, you could not have missed the widely discussed issues of spread widening seen in catastrophe bonds, or the hardening of reinsurance pricing and how that spills over to ILS rates and returns.

The Demex Group, a climate risk focused insurtech that aims to deliver climate-resilience through financial risk solutions on a global scale, has launched new parametric snow insurance covers that are financially supported through derivatives agreements with ILS fund manager Nephila Capital, as well as new reinsurance agreements.

Having been acquired by New York headquartered financial services group Cowen, the Guernsey based, previously Credit Suisse Insurance Linked Strategies supported reinsurance company Kelvin Re Limited remains under review, from a ratings perspective, given uncertainty related to its parent and the eventual strategy it will take.

The CATCo retrocessional reinsurance investment portfolio continues to benefit from favourable development on reserves, with the manager expecting yet another release of side pocket investment capital later this year, which it expects to buy back more shares with.

The first-half of 2022 saw private insurance-linked securities (ILS) funds, so those allocating to collateralised reinsurance, retrocession and other ILS assets, as well as catastrophe bonds, deliver an average performance, in terms of returns to their investors.

The rumoured acquisition of hybrid P&C program, fronting and risk transformation company Transverse Insurance Group by MS&AD Holdings, through its Mitsui Sumitomo Insurance unit has now been confirmed, as the firms made a joint announcement this morning.