capital markets

The current hardening cycle in the reinsurance market is expected to last until the end of 2021 by analysts at Jefferies, who also say the broad-based firming is now being seen in almost all lines of business globally.

As expected, U.S. focused mortgage insurer Essent Guaranty has reported that all of its mortgage insurance-linked securities (ILS) transactions outstanding are now subject to a trigger event, after the Covid-19 pandemic drove delinquency rates much higher.

Private equity and buyout giant KKR & Co. L.P. (or Kohlberg Kravis Roberts) has again demonstrated its appetite for insurance-linked returns by announcing it is to acquire life and retirement focused insurance and reinsurance firm Global Atlantic Financial Group.

While commercial and personal property insurance rates rose broadly in the second-quarter of 2020, it is the catastrophe exposed regions and segments of the business that are rising fastest, according to MarketScout.

The Bermuda insurance and reinsurance market’s share of global alternative capital capacity accelerated in 2018 to reach an impressive $71 billion, or roughly 73%, as capital raising flowed to Bermuda-based ILS structures and funds.

The transaction is the first personal auto reinsurance transaction backed by alternative capital that AXA XL has completed in Bermuda, helping long-time MGA partner Bluefire to reduce its exposure in a capital efficient manner.

Integral ILS Ltd. has been launched as a new Bermuda based insurance-linked securities fund manager by industry execs Richard Lowther and Lixin Zeng, with ties to global insurance distributor and servicer AmWINS and reinsurance firm TransRe.

In spite of the unprecedented impacts of the Covid-19 pandemic on sectors of all shapes and sizes, when it comes to servicing the insurance-linked securities (ILS) sector during this challenging time, Guernsey did not miss a beat.

The average return of catastrophe bond and insurance-linked securities (ILS) funds was just 0.12% in May 2020, as muted performance was the order of the day and a number of funds fell to a decline.

The Lloyd’s insurance and reinsurance market appears to be actively exploring use of a specific insurance-linked securities (ILS) structure under the UK ILS regulatory regime, to help capital markets investors access risk underwritten in the market more easily.