Swiss Re have announced some structural changes in their financial markets unit. The most dramatic of which is that they are to stop structuring life insurance-linked securities for third-parties.
The Swiss Re ILS department will continue to focus on catastrophe and weather risk transfer and securitization.
Swiss Re won’t be completely out of the ILS frame as they will still keep a team to help them with transferring their own life risks.
The main reason for this change of heart is the current financial climate, sales of bonds linked to life insurance profits have tumbled (read ground to a halt) in recent months with no issuance since the Aegon deal in July this year.
The fact that Swiss Re are remaining active in the catastrophe lined securities market is a good thing for readers of this blog as at times like these you really need the big players to remain true to the markets.