Your search for “secondary market prices returns”

There is unlikely to be an oversupply of alternative reinsurance capital or insurance-linked securities (ILS) capacity in the near-term, as the ILS segment of the re/insurance industry focuses on delivering returns to its investors, according to analysts at J.P. Morgan.

Insurance-linked securities (ILS) fund strategies delivered a second month in a row of muted performance in March 2022, as some catastrophe exposure and continued price pressure in catastrophe bonds, dented returns for some strategies, but overall the sector remains positive for Q1, further underscoring the decorrelation potential for investors.

The market for retrocessional reinsurance has been one of the most capital constrained and loss impacted over the last few months, which has resulted in an adjustment to priorities for those writing retro covers, while buyers are having to adapt to the demands of capital.

Aetna, the health, medical and benefits insurance unit of CVS Health, has returned to the capital market and insurance-linked securities (ILS) for issuance of its thirteenth Vitality Re health insurance catastrophe bond structure, aiming to secure $200m of reinsurance from a Vitality Re XIII Ltd (Series 2022) transaction.

The majority of insurance-linked securities (ILS) funds have reported a negative return for February 2021 after the impacts of the US winter storm and Texas freeze, according to the latest report from the Eurekahedge ILS Advisers Index.

The average return of the insurance-linked securities (ILS) fund market was dented in October 2020 by some selling pressure on certain aggregate catastrophe bond positions and reserve setting for potential losses to catastrophe reinsurance programs due to the COVID-19 pandemic.

Catastrophe bond funds have faced pressure on positions in May thanks largely to increasing cat bond spreads, as the secondary market responded to primary issuance premiums, as well as high levels of liquidity that can impact values of positions.

Currently, the insurance-linked securities (ILS) and broader reinsurance market environment provides long-term investors with a good entry point into the catastrophe bond market, according to Florian Steiger, a portfolio manager at Twelve Capital.

Despite an overall slower level of issuance of non-life catastrophe bonds in the first-quarter of this year, broker Willis Re notes that yields are on the rise as investors and ILS funds demand higher returns after recent losses.

A number of at-risk of loss catastrophe bonds have been traded at rock-bottom distressed prices, suggesting investors have sought to offload bonds they believe will face a total loss, while a buyer (perhaps a single investor) is willing to bet there could be some improvement in the outlook.