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.


Flight to quality continues as ILS managers get benchmarked: Lohmann & Matter, Schroders

There is a clear and ongoing 'flight to quality' where ILS funds are concerned, according to Dirk Lohmann, Chairman and Flavio Matter, Head of Origination, ILS, at Schroder Secquaero. Lohmann (right), a co-founder of the ILS investment management unit, stepped into the newly-created position of Chairman in September 2020, paving the read the full article →

ILS capital takes a faster view on rates than reinsurers: Cory Anger, GC Securities

When the market is turning and reinsurance rates move in one direction, or another, it tends to be insurance-linked securities (ILS) investors that move first and fastest, according to Cory Anger, Managing Director at GC Securities. Anger, who works on insurance-linked securities (ILS) for reinsurance broker Guy Carpenter, was taking part read the full article →

Ambassador Fund is latest mutual cat bond & ILS fund launch

A new US mutual investment fund with a focus on catastrophe bonds and insurance-linked securities (ILS) is set to launch, with the Ambassador Fund, as it is named, set to continue a trend of bringing ILS investment opportunities to a wider range of investors. The Ambassador Fund will be an exchange read the full article →

ILS inflows to continue, even to secondary perils & aggregates: Aon’s Ronda

While there have been challenges for ILS investors over recent years related to losses from so-called secondary perils and to aggregate structures, the market is expected to continue attracting capital, even to these more recently loss-affected areas, according to Tim Ronda of Aon's Reinsurance Solutions. Speaking during a virtual briefing held read the full article →

Fitch sees “breakout” potential for ILS, could double by 2030

The insurance-linked securities (ILS) market has "breakout" potential as the sector returns to growth, increasing numbers of new sponsors enter the market, including from outside of insurance and reinsurance, but the real catalysts for future expansion could be climate change and ESG, Fitch Ratings believes. Fitch has a particularly bullish outlook read the full article →

Rate hardening should persist at 1/1: Leadenhall CEO Albertini

Hurricane Ida "reminds us that the strength and trajectory is what is important when it comes to hurricanes" and that "there is always a lot to learn from every event". This is according to Luca Albertini, CEO of London-headquartered Leadenhall Capital Partners LLP, a subsidiary of MS Amlin. Speaking to Artemis read the full article →

Collateralized reinsurance rises to $50bn on evident pricing discipline: AM Best

The collateralized reinsurance market is estimated to have grown to around US $50 billion by the end of the first-quarter of 2021, with capacity having increased slightly following a more challenging period, according to AM Best. The rating agency believes that collateralized reinsurance capacity returned to growth, helped in large part read the full article →

Mutual ILS funds take Ida hit. Stone Ridge interval fund falls ~5%

The main mutual insurance-linked securities (ILS) and reinsurance linked mutual investment funds have experienced some declines in the wake of the recent landfall of major hurricane Ida. Hurricane Ida made landfall on August 29th in Louisiana with major 150 mph winds. The storm devastated regions of the coast, impacted New Orleans read the full article →

SCOR “kicked itself” for not renewing mortality bonds: CEO Rousseau

French reinsurance company SCOR "kicked itself" for not having renewed its mortality catastrophe bonds in the past, the firms new CEO Laurent Rousseau explained today. Laurent Rousseau was speaking during a virtual event organised by the organisers of the Rendez-Vous de Septembre (RVS) today, in which he discussed the pandemic and read the full article →

Sidecar capacity – demand outpacing supply: Shiv Kumar, GC Securities

Demand for alternative reinsurance capacity to support sidecars and quota share structures is outpacing supply, according to Shiv Kumar who explained that the reinsurance sidecar market has grown despite facing challenges in recent years. According to GC Securities numbers the private collateralized quota share and reinsurance sidecar market now makes up read the full article →