Insurance Linked Investments

According to John Forney, the CEO of United Insurance Holdings (UPC Insurance), the firms recently completed $3.1 billion reinsurance program featured a “heavy dose of collateralized limit” and at the same time more capital market investors were attracted to invest in its latest Armor Re II Ltd. catastrophe bond.

In preparing for its acquisition by French insurance giant AXA, Bermudian insurance and reinsurance firm XL Group has laid out some of the managerial changes to expect during the transition, but has highlighted that responsibility for ceded reinsurance and alternative capital will remain with Mark van Zanden.

Tangency Capital Ltd., a recently launched insurance-linked securities (ILS) investment venture that has a focus on quota shares, has raised its first $50 million from a seed investor and begun to deploy the capital following its “differentiated” quota share focused investment strategy.

Boutique alternative investment specialist Hatteras Funds is set to launch a new insurance-linked securities (ILS) and reinsurance linked investment mutual fund arranged as an interval structure, becoming the latest company to offer reinsurance-linked investments to advisors and clients.

It’s our pleasure to announce a number of new speakers from Aon Securities, Mt. Logan Re, NatCatDAX and DBS Bank, for the upcoming third instalment of our annual insurance-linked securities (ILS) conference in Asia, ILS Asia 2018.

The Bermuda Stock Exchange (BSX) continues to grow its amount of catastrophe bond and insurance-linked securities (ILS) listings, with a further 44 securities with a combined value of $4.802 billion added in the first four months of 2018.

The premium investment float generated by total return reinsurance vehicle KaylaRe Ltd. continued to grow in the first-quarter, promising an increasing return on the asset side of the reinsurer, but fee income delivered to parent Enstar declined due to lower performance from the ceded business in the period.

Steady increases in interest rates will benefit alternative investment strategies that have investments in short-term, highly rated fixed income portfolios, as it will raise their expected returns and could result in them growing their share of the overall hedge fund industry, according to the founder of Agecroft Partners.

Mt. Logan Re Ltd., the collateralized reinsurance, sidecar-like investment vehicle of Everest Re which constitutes the reinsurers main third-party capital management strategy, underwrote 50% more premiums in the first-quarter of 2018 compared to the prior year.

Brexit, or the impending exit from the European Union by the United Kingdom, has been seen to be deterring some potential sponsors of insurance-linked securities (ILS) transactions under the recently launched UK ILS regulatory and tax framework.