Insurance Linked Investments

After a record-setting quarter for the catastrophe bond market in Q2 2021, the market is on record-breaking pace and issuance is expected to continue to be supported by capital inflows and also an expectation that more capital will be reallocated to cat bonds from other areas of insurance-linked securities (ILS), according to Aon Securities.

New opportunities for Nephila Capital to grow its insurance-linked securities (ILS) business are expected to come to fruition over the next year through bespoke offerings and ESG portfolios, while Lodgepine’s first retrocession ILS fund launch is just the start, according to Markel Corporation Co-CEO Richie Whitt.

The environmental, social and governance (ESG) credentials of the insurance-linked securities (ILS) market have become a key driver for issuance activity, according to John Seo of Fermat Capital Management, LLC.

Incoming Hiscox CEO Aki Hussain explained that new capital raised by the group’s Hiscox ILS funds in the second-quarter translated into a significant increase in gross written premiums.

Metromile, the auto insurance focused technology company that recently listed on the Nasdaq after a SPAC acquisition, has added insurance and reinsurance linked investments specialist John Butler from Cohen & Co. to its Board.

Lodgepine Capital Management Limited, the retrocessional reinsurance ILS fund management unit of Markel Corporation, launched its first insurance-linked securities (ILS) fund featuring third-party capital at July 1st 2021 with just under $100 million in assets.

Assets under management (AuM) at the largest dedicated insurance-linked securities (ILS) specialist manager Nephila Capital rose to $9.8 billion after the second-quarter of the year, while revenues reported for the period were almost flat with the prior year.

In emerging Asia, there are opportunities for insurance-linked securities (ILS), despite the perception that reinsurance markets across the region remain in a developing phase, according to William Ho, Chief Executive Officer (CEO) of MS Amlin Asia Pacific, and Head of Reinsurance for Asia, MS Amlin.

The insurance-linked securities (ILS) market and its fund managers are adapting their strategies following several years of heavy catastrophe losses, with their experiences in dealing with trapped ILS collateral driving them to evolve the way ILS fund side pockets are set and dealt with, Brian Desmond of Horseshoe told Artemis.

Insurance holding company W. R. Berkley Corporation is making good use of its first collateralized reinsurance sidecar, now having ceded $139 million of property and casualty reinsurance premiums from across its business to the structure in its first year.