Insurance Linked Investments

According to rating agency Kroll Bond Rating Agency (KBRA), the now approved updated business plan for ILS Capital Management’s reinsurance company Prospero Re Ltd., which allows it to write both fully collateralized and traditional reinsurance with an element of leverage, does not warrant any change to the vehicles rating.

The third insurance, reinsurance and insurtech focused Special Purpose Acquisition Company, or SPAC, from fixed income financial services focused investment firm Cohen & Company, LLC has now successfully completed an upsized $250 million initial public offering (IPO).

The alternative reinsurance capital and insurance-linked securities (ILS) sector may return to growth in 2021, but it may be slower than some expect, according to analysts at RBC Capital Markets.

The latest catastrophe risk stress testing analysis by the Bermuda Monetary Authority (BMA), of its property and casualty insurance and reinsurance market, shows up some interesting trends in the use of specific types of hedging, reinsurance and retrocession arrangements.

Hudson Structured Capital Management Ltd. has entered the Special Purpose Acquisition Company, or SPAC marketplace, with a new insurance, reinsurance and insurtech focused company named Kairos Acquisition Corp. that will target raising $200 million or more in its initial public offering (IPO).

Arch Capital Group Ltd., the Bermuda headquartered specialty insurance and reinsurance firm, has now completed its fourth mortgage insurance-linked securities (ILS) issuance of 2020, closing the Bellemeade Re 2020-4 Ltd.  issuance at $321 million in size.

Brazil has now published its awaited rules on insurance-linked securities (ILS) issuance and special purpose reinsurance vehicles, which are due to come into force from January 4th 2021 bringing domestic ILS capabilities to its marketplace.

This roundtable discussion was convened by specialist insurance-linked securities (ILS) and catastrophe bond investment manager Plenum Investments and moderated by Artemis in December 2020.

The Association of Bermuda Insurers and Reinsurers (ABIR) has announced new members for 2021 coming from across the spectrum of reinsurance and third-party capital or ILS fund management.

Swiss Re, the global reinsurance company, has registered a special purpose insurer (SPI) in Bermuda which will presumably act as an underwriting vehicle for its recently established dedicated ILS fund, the Core Nat Cat Fund under 1863 Fund Ltd.