Insurance Linked Investments

Aon’s newly formed Global Portfolio Broking team, part of the Aon Reinsurance Solutions business, will look to the capital markets and ILS funds as sources of capacity where appropriate for backing facilities business and portfolios of risks.

The value of alternative risk premia focused mutual fund manager Stone Ridge Asset Management’s investment in a Lloyd’s of London corporate vehicle has increased significantly, as the appetite to access reinsurance linked returns through the key specialty re/insurance hub in London looks to be paying off.

The Credit Suisse Insurance Linked Strategies Ltd. team has hired Paul Hertelendy, previously at French reinsurer SCOR, to the senior roles of Head of Reinsurance Investments and Deputy Head of Insurance Linked Strategies.

The remaining slice of in-force notes from Bermudian reinsurance firm RenaissanceRe’s $140 million Series 2017-1 issuance of notes from its Fibonacci Reinsurance Ltd. sidecar-like vehicle have had their maturity extended for another three months.

The outstanding market for catastrophe bonds and related insurance-linked securities (ILS) has experienced impressive growth in 2018 so far, growing by 14% across the first half of the year, to a new record size of $35.3 billion.

Insurance-linked securities (ILS) and collateralized reinsurance funds managed a positive average return of 0.19% for the month of May 2018, but the impacts of last year’s hurricanes and other catastrophe losses continued to hurt some fund strategies with a number falling negative for the month.

Stone Ridge Asset Management’s mutual ILS funds experienced slower growth in terms of insurance-linked security (ILS) and reinsurance linked assets under management in the last quarter of record, but the manager has hit a new milestone as its ILS assets reached $7 billion.

The insurance-linked securities (ILS) market and non-traditional or alternative sources of capital gained more ground at the mid-year June 1st and July 1st 2018 reinsurance renewals, as equivalence of coverage increased while ILS capacity began to expand its remit once again.

Reinsurance firms are reacting to the realisation that there is a “new normal” in property catastrophe reinsurance pricing, according to Willis Re, as they faced the reality at the mid-year renewals that rate momentum is disappearing and some accounts came out as much as -7.5% down.

Fidelis Insurance, the specialty insurance and reinsurance firm launched by Richard Brindle, has announced the hiring of Jonathan Creagh-Coen as Head of Strategic Relationships.