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.
Alternative reinsurance capital, so the capacity deployed through insurance-linked securities (ILS) structures including catastrophe bonds, has remained relatively flat since 2021, but with traditional reinsurance capital having shrunk, the ILS market’s share has increased, according to Gallagher Re.
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R&Q, or Randall & Quilter, the non-life insurance and reinsurance legacy, run-off and program management specialist, has reported earning $9 million of fee income from its legacy insurance focused collateralised reinsurance sidecar, Gibson Re.
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Insurance-linked securities (ILS) funds, as a group tracked by ILS Advisers and Eurekahedge, have delivered their best single monthly return of the year since January, with the average return across the group of ILS funds reaching 0.24% in July 2022.
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Specialty reinsurance firm Ariel Re has cited allocating capital to the Lloyd’s marketplace, through an entity such as itself, as a “compelling alternative to ILS investment manager fund structures,” as it announced becoming a Signatory of the Standards Board for Alternative Investments (SBAI).
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There is growing optimism in the insurance-linked securities (ILS) market over the potential for subrogation claims against ERCOT related to February 2021 winter storm and Texas freeze losses to reduce exposure to the event, according to AM Best.
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Gallagher Re, the global reinsurance broker, has made a new senior appointment in its capital markets and insurance-linked securities (ILS) unit, Gallagher Securities, hiring Alexandre Delacroix from Natixis for an EMEA focused capital markets and ILS role.
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A collateralized insurer class of company has now officially been registered in Bermuda, with Vesttoo Alpha P&C Ltd. set to play a pivotal role in the companies platform and offering of P&C insurance returns to investors.
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The lines between third-party capital, so that allocated by investors and often structured into insurance-linked securities (ILS), and traditional insurance and reinsurance capital, are continuing to blur.
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Insurance-linked securities (ILS) fund managers have been working to free trapped capital related to possible COVID pandemic related losses in European reinsurance contracts, with commutations being pursued, AM Best has reported.
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Aon Insurance Managers (AIM), the unit of the global insurance and reinsurance broker that deals with insurance management, including of commercial, captive and insurance-linked securities (ILS) vehicles, has expanded the roles of two well-known executives to encompass additional global responsibilities.
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