capital markets

Aon Securities, the insurance-linked securities (ILS), catastrophe bond and capital markets of the insurance and reinsurance broker, has announced the hiring of Richard Pennay as Head of ILS, who most recently worked at ILS investment fund manager Merion Square Capital LLC.

The overall lack of profitability in the Florida insurance marketplace has resulted in the state increasingly being seen as a “bad bet” by insurance-linked securities (ILS) investors and means rate improvements are still needed, John Seo, Co-founder of Fermat Capital Management, LLC explained at a recent event in Tampa.

Nephila Capital’s new specialty lines focused Syndicate 2358 at Lloyd’s was funded via the market’s insurance-linked securities (ILS) structure, London Bridge Risk PCC.

Nephila Capital, the largest investment manager focused on insurance and reinsurance as well as climate risk, has announced the launch of Syndicate 2358 at Lloyd’s, which will have a specialty lines focus.

Vesttoo, the insurtech that uses proprietary artificial intelligence and machine learning to help companies assess and transfer risks to the capital markets, has added experienced growth equity specialist investment professional and former Goldman Sachs executive Raluca Ragab to its advisory board.

Direct proportional sidecar and quota share reinsurance or retrocession arrangements are helping that segment of the insurance-linked securities (ILS) market to expand after a few years of challenges, reinsurance broker Guy Carpenter has reported.

Global reinsurance giant Munich Re is close to completing a renewal of its Eden Re II Ltd. fully collateralised reinsurance sidecar vehicle for 2022, with a $42.1 million tranche of Series 2022-1 Class A notes the first to come to light.

In 2022, there is a strong chance Florida’s Citizens Property Insurance Corporation buys more private market risk transfer in the form of reinsurance and catastrophe bonds through its Everglades Re program, although the Board has directed a review of risk transfer versus pre-event financing to see how money can be saved.

Michael Millette, Managing Partner at insurance-linked securities (ILS), reinsurance and transportation investment manager Hudson Structured Capital Management Ltd., has explained that without credible modelling, a cyber ILS market is unlikely to develop as capital won’t want to support the risk unless it has a better understanding of it.

Deployable (or not trapped and available to put to work) capital in the insurance-linked securities (ILS) sector is estimated to have fallen to around $70 billion to $75 billion, according to analysts at KBW.