Insurance Linked Investments

For insurance-linked securities (ILS) fund investors who faced their heaviest losses ever in 2017 (said up to $18bn this morning), another loss impacted year, even if breakeven, could be sufficient to cause them to call for better returns.

The Head of the Bermuda branch of Tokio Millennium Re AG (TMR), Kathleen Faries, has said the firm sees its important strategic partnerships with alternative, or third-party reinsurance capital as a growth opportunity.

The insurance-linked securities (ILS) market could ultimately bear as much as $18 billion of the industry loss from the 2017 hurricane events, according to rating agency A.M. Best.

Tullett Prebon, a leading electronic and voice interdealer broker and part of the TP ICAP group, has launched a new issuance and trading platform for what it has termed Insurance Linked Notes, initially featuring catastrophe industry-loss instruments that will be fully-securitised to have the benefits of secondary liquidity.

Typhoon Jebi’s impacts on Japan are expected to result in a loss to the insurance industry of up to $4.5 billion by catastrophe risk modeller AIR Worldwide, an amount which has the potential to cause some impacts to reinsurance interests.

A series of groundbreaking catastrophe bonds covering new perils and indemnifying new sponsors have been well received by investors, according to Shiv Kumar, president and global leader of GC Securities, Capital Markets

Munich Re, the largest reinsurance company in the world, has said it would welcome capital markets support in providing capacity for cyber accumulations risks.

Aon’s Reinsurance Solutions division has launched a new Capital Advisory team led by Eric Paire, as it recognises the need to deliver on capital optimisation for its clients.

The reinsurance market is on the cusp of entering a renaissance period driven by technology and securitisation, according to senior executives from broker Willis Re.

Non-life insurance is becoming unprofitable and without significant improvement in underwriting margins, global reinsurance firm Swiss Re says that insurers will fail to deliver sustainable returns.