Insurance Linked Investments

RenaissanceRe, the Bermuda headquartered specialty re/insurer and third-party reinsurance capital manager, has had continued success in raising new funds for its collateralised reinsurance and retrocession focused Upsilon ILS strategy in the first-half of the year.

Markel Corporation hopes to see fresh inflows coming into its insurance-linked securities (ILS) business in the second-half of 2020, as the capital markets become less volatile and investor confidence recovers, according to Co-CEO Richie Whitt.

Discussing the challenges faced in the insurance-linked securities (ILS) market as a result of the Covid-19 pandemic today, Darren Redhead, CEO of Lancashire Capital Management, explained how his unit is relatively insulated from issues related to redemption that some others in the ILS space have faced.

A handful of insurance-linked securities (ILS) funds invested into collateralised reinsurance positions have experienced some further adverse development related to 2019’s Japanese typhoon Hagibis in June, we understand.

Bermudian specialist insurance and reinsurance firm AXIS Capital has reported another year-on-year decline in the level of fee income earned through the use of third-party and insurance-linked securities (ILS) capital within its business for the second-quarter of 2020.

Lancashire Capital Management Limited, the third-party capital collateralised reinsurance underwriting arm of specialty insurance and reinsurance group Lancashire Holdings, has delivered higher fee income to its parent in the first-half of 2020, as profits of the unit rise alongside its increased assets under management.

Nephila Capital, the largest dedicated insurance-linked securities (ILS) investment manager in the industry, has continued to drive rising ILS related revenues for parent Markel Corporation in the second-quarter, but its assets under management declined further, ending June at $9.5 billion.

RenaissanceRe, the Bermuda-based reinsurance firm and third-party capital management specialist, has raised an additional $250 million of capital from third-party investors for some of its ILS and joint-venture vehicles in the second-quarter of 2020, with the growing capital under management now driving increased fee income.

There’s a very real and vast opportunity for sustained insurance sector growth across emerging Asia over the next decade, and insurance-linked securities (ILS) capacity will be required, according to executives at Hong Kong domiciled reinsurance company Peak Re.

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.