Insurance Linked Investments

Catastrophe bond fund strategies in the UCITS format averaged positive returns for the month of January 2025, despite the effects of wildfire related mark-downs to exposed positions, according to the latest data from the Plenum CAT Bond UCITS Fund Indices.

According to broking group Howden, inflows are accelerating in ILS arrangements for casualty, managing general agents (MGAs), cyber insurance-linked securities (cyber ILS) and reinsurance sidecars, as capacity providers look to grow existing premium pools.

White Mountains has reported that for full year 2024, its investment into the Outrigger Re collateralized reinsurance sidecar, which supports its property and casualty insurance and reinsurance subsidiary Ark, delivered income of $46 million, down 33% on 2023 as catastrophe losses had a far greater impact.

Parameter Climate, the parametric climate and weather risk transfer focused underwriter and advisor, has announced the formation and launch of a Bermuda-based transformer vehicle named Parameter Capital Bermuda Ltd, as the company looks to broaden access to its deals and syndicate parametric risk to non-traditional capital.

The awaited launch of the Brookmont Catastrophic Bond ETF is nearing and Artemis spoke with Ethan Powell, Principal & Chief Investment Officer of Brookmont Capital Management, LLC and Rick Pagnani, co-founder of King Ridge Capital Advisors LLC, to learn more about the strategy and their thoughts on how they see it developing.

Reinsurance broker Gallagher Re has announced that insurance-linked securities (ILS) veteran Jason Bolding has been promoted to Chief Executive Officer (CEO) of Gallagher Securities, the firm’s ILS and capital markets broker-dealer division, while Bill Dubinsky moves into the role of Chairman.

Markel Group has reported an increase in insurance-linked securities (ILS) revenues for 2024 from the managed ILS funds of its Nephila Capital unit, while premiums ceded to Nephila reinsurance structures rose by 55% year-on-year.

Insurer USAA revealed today that it has received more than 3,500 claims related to the California wildfires, with 86% of claims receiving initial payments of more than $1 billion, with the company projecting that its members’ wildfire losses will reach roughly $1.8 billion.

The Florida State Board of Administration made good on a decision to allocate more capital to natural catastrophe insurance-linked securities (ILS) ahead of the January renewals, with an additional $70 million investment in the RenaissanceRe vehicle Tintoretto Reinsurance Partners, LP made in the fourth-quarter.

CatX, the digital catastrophe and parametric risk exchange company, has announced the launch of its AI-powered Catamaran Parametric platform, which has been designed to streamline the complexities of parametric protection for investors.