Insurance Linked Investments

Cyber risk offers the ILS markets a massive opportunity, albeit one with plenty of challenges attached, thinks Niklaus Hilti, Head of Credit Suisse’s insurance-linked securities (ILS) division.

A new Florida domiciled property and casualty insurance company start-up has been launched by United Insurance Holdings (UPC Insurance) in partnership with Tokio Marine Kiln, which will help the firms expand their footprint and exposure in the state.

Collateralized reinsurance market growth shows no signs of slowing down, according to rating agency S&P, as the “exceptional growth” exhibited by this form of third-party capital looks set to continue, in particular thanks to the ease of uptake for ceding companies.

The recent fire at a floating dock in the shipyard of luxury super yacht manufacturer Lürssen has been designated as a loss event to track by Property Claim Services (PCS) through its PCS Global Marine & Energy product.

Retrocessional reinsurance specialist investment manager Markel CATCo has bought back 1 million shares in one of the classes of its stock exchange listed fund.

The Lloyd’s market has put its investigations into the potential use of insurance-linked securities (ILS) to protect its Central Fund on-hold for the moment, according to CFO John Parry.

Collateralized reinsurance quota shares and retrocessional protections that sit in lower layers of cedant’s towers are the most likely source of ILS market losses from hurricane Florence, according to rating agency Fitch.

The insurance-linked securities (ILS) market and alternative reinsurance capital is forecast to take a greater share market of global reinsurance by 2020, suggesting continued expansion for capital market activity in the sector, according to respondents of our first global reinsurance market survey.

Reinsurance rate increases are set to fade in 2019 leading to a broadly stable pricing environment and at the same time alternative capital and insurance-linked securities (ILS) is set to persist, according to rating agency Standard & Poor’s.

Valuations of some of the listed and mutual insurance-linked securities (ILS) fund strategies have stabilised or even begun to recover after hurricane Florence’s impacts proved to be less severe to ILS investments than had initially been anticipated.