Insurance Linked Investments

The insurance-linked securities (ILS) and collateralised reinsurance market is still hunting for the right-balance between serving insurance and reinsurance cedents with the protection they need, while dealing with finite term securities, according to Paul Schultz, the CEO of Aon Securities.

Hudson Structured Capital Management Ltd. (doing its insurance investment business as HSCM Bermuda), the insurance-linked securities (ILS), reinsurance- and transportation- focused investment manager, was a lead backer of insurance giant AIG’s recent launch of a new Lloyd’s syndicate.

For our latest Artemis Live video interview I had a detailed and interesting discussion with Stephan Ruoff, the Deputy Head of insurance-linked securities (ILS) asset manager Schroder Secquaero, a specialist division of global investment group Schroders.

Bermuda-based reinsurance firm and third-party capital management specialist RenaissanceRe has again reported a rise in the amount of fee income earned through its various third-party capital management and ILS fund activities, also paying out more in distributions to investors as well.

As we reported recently, Markel Corporation has invested $90 million of its own capital into an investment strategy managed by its retrocessional reinsurance focused investment manager Markel CATCo, to boost capital available to fund investor redemptions.

Hiscox Group, the Bermuda headquartered re/insurer, has acquired additional retrocessional reinsurance protection against peak catastrophe risks with a $100 million slug of industry loss warranty (ILW) based protection secured in advance of the all-important hurricane season.

The Covid-19 pandemic is unlike anything else ever encountered by the re/insurance industry and will be a headwind for future reinsurance capacity, according to AIG’s Global Chief Operating Officer and CEO of General Insurance Peter Zaffino.

Insurance and reinsurance firm Hiscox Group has announced a new capital raise to help the company be better positioned for growth opportunities and rate increases across its reinsurance and U.S. wholesale businesses, but at the same time third-party capital support at the firm has dipped.

American International Group, Inc. (AIG) officially launched its latest syndicate at Lloyd’s yesterday, with Lloyd’s Syndicate 2019 set to be the largest ever launch in that market with a target for around $1 billion of gross premiums to be written.

Bermudian specialist insurance and reinsurance firm AXIS Capital reported a drop in fee income earned from the use of third-party and insurance-linked securities (ILS) capital within its business, as cessions to investors declined considerably in the first-quarter of 2020.