Insurance Linked Investments

After a particularly busy first-half of 2021 for catastrophe bond issuance, global reinsurance firm Swiss Re’s Capital Markets unit believes that a $50 billion market is possible by 2025 and that two drivers of further insurance-linked securities (ILS) market growth could be pandemic risk and ESG.

Investor demand for environmental, social and governance (ESG) appropriate investment opportunities and asset classes is expected to become a key driver for the insurance-linked securities (ILS) market going forwards and a new fund launch from giant asset manager BlackRock only serves to reinforce this belief.

When it comes to constructing a catastrophe bond fund it is important to consider market limitations, in terms of size and the availability of diversification. Given the cat bond market is only so large, there is a point at which growth in fund assets can come at the expense of returns, according to Plenum Investments […]

While it’s not essential to invest in the insurance-linked securities (ILS) asset class for decades to achieve expected returns, it is important that investors time their entry into the space, according to Morton Lane, President, Lane Financial LLC and Director, MSFE Program, The University of Illinois in Urbana-Champaign.

It appears there are no non-compete restrictions to prevent Willis Towers Watson (WTW) from continuing to offer advisory and structuring services related to the issuance of insurance-linked securities (ILS), after the sale of its treaty reinsurance business under Willis Re to Arthur J. Gallagher (AJG or Gallagher).

Hudson Structured Capital Management, the reinsurance, insurtech and insurance-linked securities (ILS) focused asset manager, has doubled-down on its investment in managing general agent Occam Underwriting, by taking a majority stake in the company.

Global reinsurance capital, from across traditional and alternative sources such as the insurance-linked securities (ILS) market, is particularly strong at this time, but rating agency Fitch explained in a new report that providers of it remain disciplined in their deployment of it.

While catastrophe bonds have proven extremely attractive over the last year and a half and there has been an evident shift in some investor allocations to these more liquid insurance-linked securities (ILS), it is important to provide some context and explain that some investors are also shifting the other way.

Welcome to Artemis’ sixth Bermuda-focused insurance-linked securities (ILS) executive roundtable, held virtually for the second year in a row owing to ongoing pandemic-related restrictions.

In commenting on the news that Arthur J. Gallagher (Gallagher) has agreed to acquire the majority of reinsurance broker Willis Re, analysts at KBW highlighted the immediately profitable additions of specialist service units covering analytics and insurance-linked securities (ILS).