Insurance Linked Investments

The use of an industry loss warranty (ILW) structure in inherently complex and rapidly advancing risks, such as cyber and terror, could support the repeatability of other structures and ultimately assist the innovative efforts of the insurance-linked securities (ILS) market, according to Property Claim Services (PCS), a Verisk Analytics business.

Rosh Capital Management, LP is exploring the viability of launching a total return reinsurance platform to be based in Bermuda. The approach will be to integrate a multi-manager asset strategy with both prospective and retrospective underwriting solutions, to meet demand within the current underwriting environment.

The Bermuda Monetary Authority (BMA), the financial regulator on the island, is requesting a more granular level of detail on activities involving alternative reinsurance capital and insurance-linked securities (ILS) underwriting, seeking detail on any re/insurance business financed by directly capitalised mechanisms.

Bermuda domiciled insurance and reinsurance firm AXIS Capital Holdings Limited has been steadily building on its relationships with third-party capital providers, or strategic capital partners as it calls them, resulting in the firm ceding nearly $500 million of premiums to them in 2017.

A $10 million LI Re (Series 2016-2) private catastrophe bond that was issued by German reinsurance firm Hannover Re’s segregated accounts vehicle Kaith Re Ltd., has been matured early and its notes have been delisted as a result.

The establishment of the World Bank’s capital-at-risk notes program almost four years ago set the foundation for continued innovation and expansion, as the organisation looks to “push the boundaries” of insurance-linked securities (ILS) market risks, according to Michael Bennett, Head of Derivatives & Structured Finance, World Bank Treasury.

Insurance-linked securities (ILS) investors responded to 2017 catastrophe events with growth and optimism and further expansion is expected throughout 2018, with InsurTech offering some potential, according to Bill Dubinsky, Managing Director and head of ILS at Willis Towers Watson Securities (WTWS).

Kane LPI, a specialist firm providing fund administration and related services to the international Life, Pension & Investment sector, including to some insurance-linked securities (ILS) funds, has hired Alain Fournier as Head of Kane LPI Fund Administration Services.

Private nuclear liability risk insurance-linked securities (ILS) transactions have been expanded and upsized for 2018, Artemis understands, as corporate nuclear power operators show increasing comfort with tapping ILS markets for direct insurance coverage.

Reinsurance rates at the January 1st 2018 renewal season may be as good as it gets, with pricing levels seen as a “ceiling” rather than a “floor” by analysts, who suggest that if the mid-year renewals see price increases at a level with the start of the year reinsurers should be satisfied with the outcome.