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.
Environmental, social and governance (ESG) issues and the ESG appropriateness of investments, emerged as a “major consideration” for both insurance-linked securities (ILS) sponsors and investors during 2021, according to reinsurance broker Gallagher Re.
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Reinsurance rates and pricing have more ground to cover at the important June and July renewal seasons in 2022, as analysts and our sources all agree there is further catching up to do.
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The number of new special purpose insurer (SPI) vehicles registered in Bermuda fell slightly in 2021 after a record previous year, but overall new licenses for insurance-linked securities (ILS) related vehicles remained very strong on the island.
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Swedish pension fund Alecta has allocated US $200 million to invest in reinsurance firm SCOR’s new sidecar structure, a Atlas Gotland Worldwide Catastrophe Sidecar which is part of newly formed SPI Atlas Re Limited.
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CCR Re, the French state-owned reinsurance firm, has renewed its 157 Re collateralised reinsurance sidecar vehicle for 2022 and said that it has increased the size of the sidecar by 22% compared to the prior year.
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Secondary perils require a particular level of focus, investment and effort, when it comes to modelling risks of insurance-linked securities (ILS) and reinsurance portfolios, Aeolus Capital Management executives told us recently.
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For the first time on-record, annual issuance of privately placed catastrophe bond transactions has surpassed $1 billion in 2021, as these more streamlined insurance-linked securities (ILS) arrangements continued to play an important role for some protection buyers, ILS funds and investors.
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The insurance-linked securities (ILS) investment industry is experiencing a shift driven by changing investor priorities and this is playing to the strengths of firms with deep expertise such as Hiscox, according to Vincent Prabis.
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Rating agency AM Best has said that it expects the ownership of the Guernsey based, Credit Suisse Insurance Linked Strategies supported reinsurance company Kelvin Re Limited will change, which suggests a sale of the reinsurer to a run-off specialist, or perhaps another buyer, is close.
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Global reinsurance giant Munich Re has now completed its annual two tranche of note renewal of its Eden Re II Ltd. fully collateralised reinsurance sidecar vehicle for 2022, with the issuance smaller than prior years at $190 million.
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