Insurance Linked Investments

Mid-way through 2022, the market for catastrophe bonds is on-track to match the record levels of issuance seen in 2021, according to insurance and reinsurance broker Aon.

Private equity specialist investor Cinven is doubling down on what it has learned through recent investments and deals in the insurance and reinsurance space, with the launch of a new fund strategy that will have re/insurance as a significant component.

Aeolus Capital Management Ltd., the Bermuda based reinsurance and insurance-linked securities (ILS) focused investment fund manager, has raised institutional funds, launched, and deployed a new Florida-focused facility named Corbel at the 6/1 renewals.

It’s becoming increasingly clear that losses to the aviation class of insurance and reinsurance business caused by the Russia – Ukraine conflict have the potential to impact retrocessional covers and perhaps some third-party capitalised sidecars.

The insurance and reinsurance market may face global catastrophe losses of a quantum that is a little “lighter than average” for the first-half of 2022, according to equity analysts at J.P. Morgan.

Some catastrophe bond funds have been able to moderate the impacts of broadly widening spreads through their diversification in recent weeks, with diversifying perils and regions experiencing less significant widening on outstanding cat bonds, so delivering better returns in May and June.

The assets under management (AUM) of the main UCITS catastrophe bond funds as a group only rose by 1.2% through the first-half of 2022, which goes some way to explain the restricted capacity of recent months.

The value of insurance-linked securities (ILS) held in the dedicated mutual ILS investment fund operated by Amundi US Investment Management, the Pioneer ILS Interval Fund, rose by 5% through the last quarter of record and the manager has highlighted an attractive market for deploying capital into.

Vesttoo, the insurtech that uses proprietary artificial intelligence and machine learning to help companies assess and transfer risks to the capital markets, has added three new hires to its capital markets team that bring a wealth of experience to the company.

As the retrocessional reinsurance marketplace remains capacity constricted, especially for lower down and catastrophe exposed attachments, the market has seen a resurgence in demand for weighted industry-loss warranty (ILW) products, according to Gallagher Re.