Collateral news

Insurance-linked securities (ILS) cells established in Guernsey will benefit from formalised collateral rollover provisions, including confirmation of a 30-day grace period at the start of a transaction where an ILS cell would not be considered in breach of its fully-funded requirements.

Bermuda-headquartered P&C legacy or run-off reinsurance specialist and founder of ILS Investment Management (ILSIM) Armour Group is seeking to put its expertise to work to help ILS funds or investors that have been hit by recent catastrophe losses.

As Hurricane Florence bears down on the US East Coast as a category 4 storm, Luca Albertini, CEO and founding partner of Leadenhall Capital Partners warned that regardless of whether it is a market-changing loss, it could trap collateral in retro programmes.

Wilmington Trust, N.A. has announced the hiring of Michael Ramsey to the role of client development officer in its Insurance Collateral Solutions team, the area of the business focused on collateral solutions for insurance-linked securities (ILS) including catastrophe bonds and other reinsurance transactions.

Karson, a global provider of liquidity, capital and collateral solutions to the insurance industry, is anticipating strong demand for its newly launched KT-Notes, which are designed to address the collateral needs and obligations of reinsurers and insurance-linked securities (ILS) investors.

The range of fully collateralised insurance-linked securities (ILS) mechanisms remain largely untested in the face of a large loss-event, and the complexity of extreme events suggests that potential tensions within the marketplace could emerge after an event, according to industry leaders.

Karson Management (Bermuda) Limited, led by veteran of the insurance-linked security (ILS) and alternative risk financing sector Derrell Hendrix, alongside BNY Mellon have announced the successful completion of the first K-Note reinsurance collateral financing transaction in Canada.

Wilmington Trust has added another experienced insurance-linked securities (ILS) and reinsurance collateral expert to its growing team, as it puts an increasing focus on winning business from the ILS and collateralized reinsurance sector.

Wilmington Trust has hired two insurance-linked securities (ILS) and reinsurance collateral experts, both previously with Wells Fargo, as it seeks to grow the firm’s insurance and reinsurance related trust business.

For some primary insurance sponsors of catastrophe bonds, insurance-linked securities (ILS) and other alternative sources of reinsurance capital it’s the fully collateralized nature of the products which will keep them coming back for more.