Insurance Linked Investments

Despite the fact AXIS Capital significantly increased its fee income earned from third-party capital sources in 2019, the firms assets from ILS style investors shrank over the course of the year and the company began 2020 with less of this type of investor capital than a year earlier.

Pacific Gas and Electricity (PG&E), the wildfire stricken California focused electrical utility operator, said today that its Chapter 11 bankruptcy plans remain on track and as a result it hopes to join the state’s newly formed wildfire fund and also make progress towards the subrogation payments it owes.

Commitments to the Athene Co-Invest Reinsurance Affiliate (ACRA) insurance-linked sidecar vehicle have now reached an impressive $3.2 billion, as capital raising continued within the feeder fund managed by investor and private equity specialist Apollo Global.

2020 is the year when the insurance-linked securities (ILS) market should flex its muscles to ensure the robustness of its products for both cedents and investors, speakers at our recent New York ILS conference said.

Indicative pricing for industry-loss warranty (ILW) structured retrocessional reinsurance protection has risen for U.S. and European wind and storm related perils, with some relatively significant increases seen at certain trigger levels.

Lloyd’s of London appears to have lowered the priority level of its plans for welcome insurance-linked securities (ILS) capital into the insurance and reinsurance marketplace, as three other initiatives from its Blueprint One are set to be the immediate focus.

Specialty insurance and reinsurance player Brit Ltd. successfully raised new capital for its range of insurance-linked securities (ILS) funds and structures in 2019, while investors had a better year as well as the company shared much fewer losses with them.

Lancashire Capital Management Limited, the third-party capital collateralised reinsurance underwriting arm of specialty insurance and reinsurance group Lancashire Holdings Limited, expects to deliver an impressive mid-teen return to its investors from its investment strategy for 2019.

Investment income earned from the operations of its AlphaCat Managers ILS unit by global insurance giant American International Group (AIG) dipped in the fourth-quarter of 2019, likely due to the impact of significant catastrophe losses during the period. But for the full-year the ILS-related income earned by AIG is seen to be building.

Specialty insurance and reinsurance group Lancashire Holdings Limited has benefited from higher fees within its now rebranded third-party capital collateralised reinsurance underwriting arm Lancashire Capital Management Limited, a reflection of increasing assets under management.