Collateral for insurance-linked securities (ILS) comes in numerous forms, but by far the most common is for ILS deals, especially so for all catastrophe bonds, to be fully-collateralized by cash, with that cash held in trust and invested into secure, liquid assets such as US government treasury money market funds. The use of letters-of-credit (LOCs) is also seen, but far less widely in ILS.
The insurance and reinsurance industry faces a potential crisis of confidence over some forms of collateral, as the fall-out from the Vesttoo fraudulent, or forged, letter of credit (LOC) claims spread, which might elevate the profile of the fully-collateralised model of reinsurance adopted by the insurance-linked securities (ILS) market.
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A new report from Israeli tech media group Calcalist claims that the audit at insurtech Vesttoo has turned up an issue with letters of credit (LOCs) that total a significant sum in collateral held for transactions facilitated by the company.
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Vesttoo, the insurtech that has been working to connect capital markets with diverse types of re/insurance risk, has come under scrutiny after claims of fraudulent collateral emerged in an Israeli tech publication yesterday.
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RISCfp, a company focused on financing solutions advisory and platform management, has launched a new managed treasury pool (MTP) notes offering, that can act as both investment and collateral solution for insurance and reinsurance uses.
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Computershare, an Australia headquartered banking, transfer agent and investor services provider, has acquired expertise in reinsurance and insurance-linked securities (ILS) collateral trusts, having purchased the Wells Fargo US Corporate Trust Business.
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The potential for trapped insurance-linked securities (ILS) collateral positions to be transferred and traded between parties is something that has come in for increasing levels of attention ever since the losses of 2017 and 2018, but still no solution has been found.
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There is a new reinsurance and insurance-linked securities (ILS) collateral trust provider in town, after Truist Financial Corporation was formed after a merger of equals between SunTrust and BB&T.
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The steady rise in interest rates of instruments such as U.S. Treasuries, that are typically used as collateral for insurance-linked securities (ILS) and collateralized reinsurance investments, have now served to boost returns for ILS investors in 2019.
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Armour Group, the Bermuda-headquartered P&C legacy or run-off reinsurance specialist and founder of ILS Investment Management (ILSIM), has announced that it has hired former Lloyd’s of London CFO as its new Group Chief Financial Officer.
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Around the January reinsurance renewals this year there was a lot of talk regarding brokers and ceding companies pushing insurance-linked securities (ILS) funds to agree to more stringent terms related to collateral release and rollover.
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