Insurance Linked Investments

With the world’s economies grappling with inflation, higher rates and a developing cost-of-living crisis, property insurance and as a result reinsurance claims are set to be one of the area’s of the market most affected, Swiss Re has said.

The environmental, social and governance (ESG) transparency initiative being undertaken by a leading group of Swiss-based insurance-linked securities (ILS) investment fund managers, has the potential to drive the desired change investors such as the Bank für Kirche und Caritas have been looking for, according to Tommy Piemonte.

The alternative capital markets, so insurance-linked securities (ILS) funds, ILS investors and other third-party capital sources, have played an important role at a mid-year reinsurance renewal that saw demand increase in a capacity constrained marketplace.

Prospero Re Ltd., the rated reinsurance vehicle of Bermuda headquartered ILS fund and investment manager Resolute Global Partners, (formerly ILS Capital Management), has exceeded rating agency KBRA’s expectations on the execution of its modified business plan.

The Lloyd’s insurance and reinsurance market’s willingness to adapt its capital framework is seen as positive by broker Gallagher Re, who in a new report noted the use of ILS structure London Bridge Risk to bring in new capital, contributing to a healthy Funds at Lloyd’s market.

French mutual insurer Covéa has now completed its acquisition of Bermuda headquartered reinsurance company PartnerRe from Italian holding company EXOR, while reinsurance-linked investment cooperation between the companies will continue.

As the UK’s top regulator, the Prudential Regulatory Authority (PRA), looks to further evolve the UK insurance-linked securities (ILS) regime, it’s outlined some proposed changes to the authorisation and supervision of insurance special purpose vehicles (ISPVs).

DeNexus, a specialist provider of software for cyber risk quantification for large industrial and critical infrastructure corporates, has chosen Switzerland as the home of its European operations, and hired two industry experts to establish a cyber centre of excellence in the region.

On the back of a robust opening quarter, catastrophe bond issuance remained strong in the second-quarter of 2022, and with interest from new sponsors with novel transactions, growth could be on the horizon, according to Brad Adderley.

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.