Alternative reinsurance capital

RenaissanceRe, the Bermuda based reinsurance and third-party capital management specialist, has successfully added almost $495 million in new third-party capital across some of its joint-venture and insurance-linked securities (ILS) structures in time for January 1st 2024.

Insurtech Vesttoo, the company at the heart of a scandal over fraudulent reinsurance letters of credit (LOC), has called for its ongoing US Chapter 11 bankruptcy case to be dismissed and for insolvency proceedings to be commenced in Israel in its place.

While almost every market observer and industry analyst are expecting reinsurance capital levels to increase in 2024, broker Howden has highlighted that actually securing access to capital will be a key differentiator for market participants, as not everyone is expected to be successful.

As the Vesttoo bankruptcy case continues in the Delaware court, it’s apparent that a difference of opinion that emerged near the beginning of the saga, over ownership of segregated cells and their contents, remains the key issue of disagreement between a range of creditors and parties involved.

With capital levels increasing in the global reinsurance industry and interest rising in reinsurance as an asset class, be that in insurance-linked securities (ILS) or other forms, rating agency Fitch has said it believes the market will soften again in 2025.

Here are the ten most popular news articles, week ending January 28th 2024, 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.

There are now only two weeks left until our upcoming insurance-linked securities (ILS) conference. ILS NYC 2024 will be held in New York City on February 9th 2024 and spaces are now running low, so please register soon if you want to join us.

Brazil’s regulations for “Letra de Risco de Seguro”, or LRS which translates to Letter of Insurance Risk and are effectively insurance-linked securities (ILS) laws, have passed a key hurdle and been approved by its National Monetary Council.

Porch Group, owner of a homeowners insurer that found a letter of credit (LOC) backing its reinsurance deal with insurtech Vesttoo was forged, has agreed a $30 million strategic arrangement with broking giant Aon that includes releasing all claims related to the fraud it had against the broker.

Pillar Capital Management Limited, the Bermuda-based specialist collateralized reinsurance and insurance-linked securities (ILS) investment manager, had continued capital raising success in the second-half of last year, growing its ILS asset base to a new high of $4.4 billion.