capital markets

The subject of volatility in re/insurers results due to frequency loss events and the fact they require capital and risk transfer to help them manage this, came up during one of the panel sessions at our recent ILS NYC 2024 conference in New York on February 9th.

Swiss Re’s specialist insurance-linked securities (ILS) and third-party reinsurance capital management division, Alternative Capital Partners (ACP), has reported a 68% increase to its fee income earned for the full-year 2023, reaching $195 million.

The Official Committee of Unsecured Creditors in the Vesttoo bankruptcy case has reached a proposed settlement with fronting specialist Clear Blue Insurance that sees an agreement reached on the bankruptcy plan and in relation to funds specifically held in one of the debtor vehicles, Vesttoo Bay XIV Limited.

Investor interest in the insurance-linked securities (ILS) asset class is resurging, as 2023’s strong returns and improvements to structures peak interest across institutional markets, but allocators warn they are prepared to downsize commitments to protect the market when necessary, attendees at our ILS NYC 2024 conference heard in New York on February 9th.

The Texas Windstorm Insurance Association (TWIA) could need even more reinsurance limit for the 2024 wind season, as its exposure growth drove its Actuarial and Underwriting Committee to recommend the Board sets a 1-in-100 year PML for funding purposes at a new high of $6.5 billion.

Family office investors are increasingly leaning into allocations to the insurance sector as they seek out sources of diversification and relatively uncorrelated returns, something that investment giant KKR has been doing itself, according to the firm’s Henry McVey.

More than 400 attendees joined us in New York for our seventh conference in the city on Friday 9th February and while those at  ILS NYC 2024 heard of a determination to sustain the improved market environment from industry experts, end-investors said that more than one year of evidence is required.

The Texas Windstorm Insurance Association (TWIA) may require more reinsurance limit than had been originally thought, as modelled data shows the insurer of last resort could look for as much as $3.7 billion for its 2024 renewal, almost $1.5 billion up on TWIA’s 2023 reinsurance and catastrophe bond purchase.

At a Vesttoo Chapter 11 bankruptcy case hearing, counsel for the official creditor committee said that in working to identify and trace funds remaining from reinsurance transactions implicated in the letter of credit (LOC) fraud, these investigations, which are ongoing, suggest funds were drawn from debtor structures and co-mingled, then used to pay company expenses.

Broking giant Aon has said today that it anticipates an “influx” of capital to the parametric risk transfer space in 2024, from traditional insurance, reinsurance and ILS fund sources.