Insurance Linked Investments

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.

According to Swiss Re Capital Markets, the insurance-linked securities (ILS) market continued the growth trend of recent years throughout 2024, as the last twelve months were marked by a “robust performance” for cat bond investors in the absence of events large enough to have a significant impact on the market.

Recent estimates suggest that insured losses from the Los Angeles, California wildfires could be higher than anticipated. As a result, catastrophe bond prices are showing signs of weakness, with the market’s benchmark recording its first-ever negative January return since its inception over two decades ago, according to cat bond fund manager Icosa Investments AG.

The launch yesterday of the Lumyna – Twelve Capital Parametric ILS Fund, a dedicated parametric insurance and insurance-linked securities (ILS) investment strategy managed by ILS manager Twelve Capital, is a “breakthrough” in the parametric space and provides “capacity for profitable growth”, senior execs at GC&C and Descartes Underwriting said.

Aon Insurance Managers (IM), the unit of the global insurance and reinsurance broker that provides insurance management services, across commercial, captive and insurance-linked securities (ILS) vehicles, has hired Charlotte Shreeve as its new Director of ILS North America.

With capital levels of insurance-linked securities (ILS) reaching new highs in 2024, and returns across the market remaining attractive, “with particularly strong catastrophe bond issuance,” rating agency Fitch anticipates sustained robust growth in the supply of alternative reinsurance capital throughout 2025.