Insurance Linked Investments

Europe’s insurance and reinsurance sector watchdog, the European Insurance and Occupational Pensions Authority (EIOPA), has highlighted the potential role of the capital markets and insurance-linked securities (ILS) in risk transfer and reinsurance facilities to support pandemic insurance provision.

As sustainable investing continues to gain traction across the financial world, the inherent ESG qualities of insurance-linked securities (ILS) provides a unique opportunity for investors, according to Patrick Roder, Associate Partner, ILS Practice Lead, Synpulse.

After a pause during the peak of the Covid-19 pandemic, investors are returning to the mortgage insurance-linked securities (ILS) market, helping specialist mortgage insurer NMI Holdings, Inc. to successfully price its latest and fourth deal, a $322 million Oaktown Re IV Ltd. transaction.

An update to the Bermuda Monetary Authority’s (BMA) guidance notes on special purpose insurers (SPI’s), the most commonly used structure for transacting insurance-linked securities (ILS) and collateralised reinsurance, lays out the regulators position on key issues related to collateral rollover, release of collateral and also the subject of clawback.

Nephila Capital, the largest dedicated specialist insurance and reinsurance linked investment fund manager, is to appoint an active underwriter for its new specialty lines focused Syndicate 2358 at Lloyd’s.

U.S. primary insurance carrier Travelers has confirmed that its estimated $400 million PG&E subrogation related recovery will inure to the benefit of its reinsurance panel.

Beazley, the Lloyd’s market focused specialist insurance and reinsurance underwriter, has continued to expand its market facilities business line which includes its third-party capital backed beta-like market tracking structures.

Even in the face of Covid-19, the resilience of the insurance-linked securities (ILS) market has been impressive, but moving forward, the entire risk transfer industry needs to be more attentive to emerging complex risks, says Benny Chey, Assistant Managing Director (Development and International), Monetary Authority of Singapore (MAS).

Hudson Structured Capital Management Ltd., the insurance-linked securities (ILS), reinsurance and transportation focused investment manager, has announced the departure of Partner Simon Fascione who will leave the firm on September 30th.

Hudson Structured Capital Management Ltd., undertaking its insurance and reinsurance investment business as HSCM Bermuda, has co-led a $24 million Series A investment round for home and auto insurtech firm Branch.