Collateralized reinsurance news

The Bermuda Monetary Authority (BMA), the financial regulator for one of the world’s most important insurance and reinsurance markets, has announced a change at the top, as its current Deputy CEO Craig Swan will take over the CEO role from October 1st, with current CEO and Executive Chairman Jeremy Cox set to depart.

Alternative reinsurance capital levels, largely from insurance-linked securities (ILS), has once again increased over the last quarter of record as reported by broker Aon, to reach $96 billion as of the end of March 2021, with collateralized reinsurance returning to growth.

Mercury Insurance, a California headquartered property casualty insurer, has secured $50.7 million of California wildfire reinsurance protection through a Randolph Re (Series 2021-1) private catastrophe bond issued using Aon’s platform.

Our sixth annual insurance-linked securities (ILS) event for and about the Asia region was held recently and we wanted to highlight some key insights from the event and direct our readers to on-demand replays of all of the broadcast video content.

Inflows into insurance-linked securities (ILS) funds have increased materially since the second-half of 2020, with catastrophe bond funds leading the way, but a number of other private ILS strategies also raising new capital.

Having warned previously that inflationary factors will result in elevated property insurance claims, global reinsurance firm Swiss Re has now qualified this by saying that the inflationary effect of higher materials and construction prices may only last through this year.

The ongoing and historic flooding across Europe is very unlikely to have an impact on the catastrophe bond market and insurance or reinsurance market losses will only be a fraction of the overall economic impact, showing the evident flood risk protection gap and the opportunity for cat bonds to help close it, according to Plenum […]

With Singapore now an active hub for catastrophe bonds and insurance-linked securities (ILS) and with Hong Kong primed to issue its first deal this year, regional sponsor participation can help to ensure their sustainability as ILS domiciles, according to Paul Schultz, Chief Executive Officer (CEO) of Aon Securities.

While catastrophe bond and insurance-linked security (ILS) spreads have tightened during the second-quarter of 2021, hedge fund specialist manager K2 Advisors believes that they remain attractive relative to corporate credit and are a strategy investors should be focusing on.

AGILE Risk Partners, the specialist technology-focused direct & facultative (D&F) property risk underwriting start-up with an eye on the capital markets for capacity, has now told us it has completed its first two D&F insurance-linked securities (ILS) transactions.