Compared to the “great reload” after the significant impacts and losses associated with the 2017 hurricane season, after the 2021 losses investors have been more curious about what insurance-linked securities (ILS) managers are doing in response, according to Lorenzo Volpi, Managing Partner at Leadenhall Capital Partners.
In the next in our series of sponsor showcase video interviews for the upcoming Artemis ILS NYC 2022 conference (held April 22nd in New York City), we welcomed Lorenzo Volpi, Managing Partner at specialist ILS and reinsurance investment manager Leadenhall Capital Partners, one of our Gold sponsors for the conference.
Volpi provided an update on investor trends in the insurance-linked securities (ILS) space, explaining that after a series of catastrophe losses in 2021, investors have become increasingly curious and want to understand how ILS fund managers, like Leadenhall, are responding.
“Compared to 2019 and 2020, investors engagement has increased but it has yet to reach levels that can be compared to post-hurricane Harvey, Irma and Maria which we all remember as the year of the great reload.
“I’m very pleased to say that we received interest and allocations across both non-life and life alternative credit during Q3 and Q4 of last year, despite the challenges that the COVID situation has created,” Volpi explained.
Going on to say that, “After the losses experienced in 17 and 18, and the creep associated with those events, I think the biggest challenge was to persuade disillusioned investors that the long-term benefit of the asset class within the wider portfolio allocation was still valid.
“Where as, following the 2021 events, new and existing investors have actually been more curious about hearing what the lessons-learned were and how we’ve positioned our portfolios to take advantage of the opportunities and also the perception of climate change and what it could bring to our sector.”
Volpi also discussed issues related to reinsurance pricing and its adequacy, manager and investor confidence in recently constructed ILS fund portfolios, what to expect for investor appetite in the coming months, and the importance of environmental, social and governance (ESG) in investor relations.
“Ultimately investors welcome client-servicing intimacy and an open and transparent dialogue, because the investment long-term benefits should be obvious to everyone and you don’t want to surprise them,” Volpi told us.
Hear more on investor trends in insurance-linked securities at the upcoming Artemis ILS NYC 2022 conference in New York on April 22nd (get your ticket today).
For details and to register for the conference, visit the event website: www.artemis.bm/ils-nyc-2022/.
The full video interview is embedded below and can also be viewed in full, along with previous Artemis Live video interviews here.
You can also listen in audio to our interviews by subscribing to the Artemis Live podcast here.
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