Collateralized reinsurance news

News and articles about collateralized reinsurance transactions and collateralised reinsurance market trends.

Collateralised reinsurance simply refers to any fully-collateralised reinsurance transaction, be that securitised or not.

Collateralized reinsurance allows ILS funds, hedge funds, pension funds and unrated, third-party capitalised reinsurance vehicles to participate in major reinsurance programs as the contracts they write are fully-collateralised.

The collateral is put up by investors or third-party capital providers to cover in full the potential claims that could arise from the reinsurance contract.

Normally the collateral posted is equal to the full reinsurance contract limit, minus the net premiums charged for the protection.


Artemis ILS Asia 2020 – post-conference report

Welcome to the Artemis ILS Asia 2020 conference report, which explores some of the discussions that took place during our fifth event focused on the region. Unable to travel to Singapore owing to the impacts of the Covid-19 pandemic, ILS Asia 2020 was our first virtually held conference. Spread over five read the full article →

Rated paper & ILS may be favoured over collateralized UNL retro at renewals: Aon

Retrocessional reinsurance coverage written by rated carriers, as well as other insurance-linked securities (ILS) products such as industry-loss based instruments, may find themselves in favour over collateralized ultimate net loss retro at the upcoming renewals, Aon executives said recently. Speaking during a media briefing held in place of the Monte Carlo read the full article →

Cat bond & ILS coupons should compensate as climate increases hurricane risk: Twelve Capital

Climate change, variability and the expected increases in Atlantic hurricane risk that these factors will drive, is still likely to be compensated for in catastrophe bond and private insurance-linked securities (ILS) coupons, as pricing should rise and consequently returns, in line with the risk, according to ILS manager Twelve Capital. Twelve read the full article →

Did the ILS market grow at the wrong time? – Redhead, Lancashire

Darren Redhead, chief executive of Lancashire Capital Management, acknowledges that four years in a row of trapped collateral, on the back of major natural catastrophes in 2017, 2018 and 2019 and, latterly, the uncertainty stemming from COVID-related claims, does pose a challenge. "Are we too low as a market?" he asked. read the full article →

Not everything in ILS comes down to models: Chin Liu, Amundi Pioneer

When it comes to building a portfolio of insurance-linked securities (ILS) and reinsurance linked investments, there is more to quality and return potential than simply following models, according to Chin Liu of Amundi Pioneer. Liu is a Director of Insurance-Linked Securities and a Portfolio Manager at Amundi Pioneer, managing over $90 read the full article →

Collateral held in trust for ILS transactions rises 11% for Hannover Re

Global reinsurance firm Hannover Re has been quietly expanding its activities in the insurance-linked securities (ILS) space for some time, as a key facilitators for collateralised transactions and acting as a front for certain ILS funds and investors. Every so often, more details emerge on the growth of this side of read the full article →

Brit targets ILS growth with Sussex Capital: Denton

Specialty insurance and reinsurance player Brit Ltd. is targeting further growth of its insurance-linked securities (ILS) activities, with expansion of the Sussex Capital platform anticipated, according to Chris Denton. Brit operates a range of third-party reinsurance capital structures, including the Versutus sidecar vehicle and the Sussex Capital insurance-linked securities (ILS) and read the full article →

Cedants increasingly favour catastrophe bonds, Moody’s survey finds

Reinsurance cedants and buyers are increasingly looking to catastrophe bonds as options for accessing alternative sources of reinsurance capital, a new survey from rating agency Moody's has found. Polling reinsurance buyers at property and casualty insurers, the survey asked for their plans with respect to insurance-linked securities (ILS) and alternative capital, read the full article →

FEMA begins 2021 flood reinsurance renewal process, may upsize program

The U.S. Federal Emergency Management Agency (FEMA) is back in the reinsurance market and seeking expressions of interest to participate in a January 2021 renewal of the National Flood Insurance Program’s (NFIP) traditional reinsurance program. Our sources suggest that for 2021 FEMA may look to increase the size of the traditional read the full article →

AIG has “high hopes” for AlphaCat growth & demand at 1/1: Zaffino

Insurance giant American International Group, Inc. (AIG) has "high hopes" for further growth of its insurance-linked securities (ILS) and collateralised reinsurance manager AlphaCat, expecting to see "a lot of demand" for its vehicles at the renewals, Peter Zaffino said this week. Speaking at the Barclays Global Financial Services Conference on Monday, read the full article →