Alternative reinsurance capital

The number of new special purpose insurer (SPI) vehicles registered in Bermuda fell slightly in 2021 after a record previous year, but overall new licenses for insurance-linked securities (ILS) related vehicles remained very strong on the island.

Swedish pension fund Alecta has allocated US $200 million to invest in reinsurance firm SCOR’s new sidecar structure, a Atlas Gotland Worldwide Catastrophe Sidecar which is part of newly formed SPI Atlas Re Limited.

CCR Re, the French state-owned reinsurance firm, has renewed its 157 Re collateralised reinsurance sidecar vehicle for 2022 and said that it has increased the size of the sidecar by 22% compared to the prior year.

The January 2022 reinsurance renewals have seen some of the best market conditions in years, with broad firming of rates across property catastrophe lines and retrocession that promise to enable underwriters and ILS fund managers to deliver improved returns, on an average calendar year loss basis.

Global reinsurance firm Swiss Re, through its specialist insurance-linked securities (ILS) fund management unit Swiss Re Insurance-Linked Investment Management Ltd (SRILIM), has secured a US $250 million investment into its 1863 ILS fund platform from the largest Swedish private pension Alecta.

Property insurance prices in peak catastrophe zones continued to soar in the fourth-quarter of 2021, as owners of homes and businesses in those regions of the United States were paying rate increases as high as 40 percent, according to MarketScout.

Here are the ten most popular news articles, week ending January 9th 2022, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

The insurance-linked securities (ILS) investment industry is experiencing a shift driven by changing investor priorities and this is playing to the strengths of firms with deep expertise such as Hiscox, according to Vincent Prabis.

Rating agency AM Best has said that it expects the ownership of the Guernsey based, Credit Suisse Insurance Linked Strategies supported reinsurance company Kelvin Re Limited will change, which suggests a sale of the reinsurer to a run-off specialist, or perhaps another buyer, is close.

Global reinsurance giant Munich Re has now completed its annual two tranche of note renewal of its Eden Re II Ltd. fully collateralised reinsurance sidecar vehicle for 2022, with the issuance smaller than prior years at $190 million.