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.
One of the themes coming out of this results season, as re/insurers announce their fourth-quarter and full-year 2021 earnings, is a growing confidence in the ability to expand margins and secure further growth, in a firming reinsurance marketplace.
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Managers of third-party reinsurance capital and insurance-linked securities (ILS) should anticipate a more challenging fundraising environment through 2022, as investor scepticism is currently high after recent years of catastrophe losses, according to RenaissanceRe CEO Kevin O’Donnell.
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International law firm Willkie Farr & Gallagher LLP has announced the hiring of David Luce, a senior lawyer with significant insurance-linked securities (ILS) experience, as well as experience of a range of alternative risk transfer and financing structures.
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The forward-looking return potential of many insurance-linked securities (ILS) fund portfolios continued to rise over the last year and it’s likely this has accelerated through January 2022, as price rises in reinsurance and retrocession boost no-loss and expected return metrics.
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Speaking to insurance-linked securities (ILS) funds and investors in 2022, the London insurance and reinsurance market is seen as a venue where deploying capital to access differentiated insurance or reinsurance-linked returns is increasingly attractive, but still ease of access is cited as a problem.
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For investors looking at insurance-linked securities (ILS), in order to gain the full diversifying benefits of an allocation to the asset class, it is important to look to the private ILS and collateralised reinsurance segment as well as catastrophe bonds, Zeba Ahmad, Alternatives Director at Schroders has said.
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Subrogation recoveries related to the February 2021 winter storm and Texas freeze losses are now being seen as increasingly possible, perhaps even likely, by our sources in reinsurance and insurance-linked securities (ILS) markets, as a lawsuit has been filed against ERCOT and many expect that some kind of payout will be the end result of […]
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The latest property insurance rate increase filings submitted by carriers in Florida are calling for really significant uplifts in pricing, suggesting the primary market still believes more rate is required to support sustainable profits, which implies reinsurance firming also needs to continue in the state.
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The Texas Windstorm Insurance Association (TWIA) is now set to finally appoint insurance and reinsurance broker Aon to provide catastrophe risk modeling services, after the company was recommended by its Actuarial & Underwriting Committee after a second round of RFP’s.
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Insurance-linked securities (ILS) portfolios with predominantly catastrophe bond holdings have on average outperformed many mid- and higher-risk ILS fund strategies that contain private ILS transactions over recent years, according to analysis from Frontier Advisors.
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