capital markets

As alternative reinsurance capital, from catastrophe bonds and other non-life insurance-linked securities (ILS) structures, grew to a new high of US $114 billion by the end of 2024, Gallagher Re notes that it was the main source of capital inflow to the reinsurance market last year.

Fermat Capital Management, the specialist catastrophe bond and insurance-linked securities (ILS) investment manager, has told Artemis that the firm was not consulted on the termination of its investment management partnership with GAM.

As Hong Kong continues to focus on developing insurance-linked securities (ILS) as a key market segment, a position paper from advisory body the Financial Services Development Council states that further integrating ILS products into its own investment portfolios would help the government encourage investors to consider allocating to the asset class.

The lawsuit filed by Porch Group against broker Gallagher Re regarding the Vesttoo reinsurance letter of credit (LOC) collateral fraud has been dismissed with prejudice by the Texas court. But Porch has said it intends to continue to pursue recourse in the matter.

Swiss Re Insurance-Linked Investment Management Ltd. (SRILIM), one of the specialist insurance-linked securities (ILS) fund management units of the global reinsurance firm, has a new Chief Executive Officer (CEO), as long-standing employee Bernard Bachmann stepped into the role this month, Artemis has learned.

The amount of alternative capital from insurance-linked security (ILS) and third-party investor sources in the global reinsurance market grew by 7% in 2024, to end the year at a new high of $115 billion, according to Aon’s Reinsurance Solutions.

Howden Re has reported that risk-adjusted catastrophe excess-of-loss (XoL) reinsurance rates-on-line for Japan saw reductions of 10-15% at the April 1st 2025 reinsurance renewals, as pricing “eased from a high base” and sellers sought to protect or grow positions at the renewal amidst higher competition and greater supply.

The Governing Board of the California Earthquake Authority (CEA) approved a revision to its guidelines for engaging in catastrophe bond risk transfer to the capital markets this week, while also noting a successful reinsurance renewal at April 1st, saying it secured favourable pricing and limit.

Analysts at investment bank Berenberg are highlighting the potential for a “reinsurance mega trend” period of sustained earnings growth to emerge that overshadows the more typical cycle, but warns that expansion of alternative capital and the interest of institutional investors such as pension funds could prevent this occurring.

As the California Earthquake Authority (CEA) risk transfer needs have been adjusting and its reinsurance tower shrinking, catastrophe bonds now make up almost 32% of the total as of February 28th 2025.