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.


AIG’s AlphaCat sees ILS growth, as insurer discloses $458m Q2 Covid-19 hit

AlphaCat Managers, the insurance-linked securities and collateralised reinsurance investment manager entity of insurance giant American International Group’s (AIG), has returned to outright growth in terms of ILS assets under management (AuM), for the first quarter in a while. It's the first increase in ILS assets reported by AIG for the AlphaCat read the full article →

Brit highlights benefit of capital partner relationships behind Sussex

Specialty insurance and reinsurance player Brit Ltd. highlighted the important benefit of the capital partner relationships behind its Sussex Capital collateralised reinsurance structure this morning, while the firms third-party investors appear to have taken a small share of losses in the first-half. Brit operates a range of third-party reinsurance capital structures, read the full article →

RSA puts reinsurers on-watch over Covid-19 claims aggregation

RSA Group, the UK based insurance group, has warned reinsurers signed up to its Group Volatility Cover (GVC) and catastrophe reinsurance that it hopes to be able to pass on Covid-19 pandemic related losses, above certain levels, to each of those programs. RSA has previously warned its reinsurance panel that its read the full article →

Markel hopes to add new ILS inflows during second-half: Co-CEO Whitt

Markel Corporation hopes to see fresh inflows coming into its insurance-linked securities (ILS) business in the second-half of 2020, as the capital markets become less volatile and investor confidence recovers, according to Co-CEO Richie Whitt. As we explained yesterday, insurance-linked securities (ILS) assets under management have declined at Markel's flagship ILS read the full article →

Lancashire Capital Management investors have “appetite to go forwards” – Redhead

Discussing the challenges faced in the insurance-linked securities (ILS) market as a result of the Covid-19 pandemic today, Darren Redhead, CEO of Lancashire Capital Management, explained how his unit is relatively insulated from issues related to redemption that some others in the ILS space have faced. Redhead leads the specialist third-party read the full article →

Some ILS funds see adverse typhoon Hagibis development in June

A handful of insurance-linked securities (ILS) funds invested into collateralised reinsurance positions have experienced some further adverse development related to 2019's Japanese typhoon Hagibis in June, we understand. The adverse development has been sufficient to drive a few ILS fund positions negative for the month of June 2020, we've learned, as read the full article →

Lancashire Capital Management fee income rises as strategy expands

Lancashire Capital Management Limited, the third-party capital collateralised reinsurance underwriting arm of specialty insurance and reinsurance group Lancashire Holdings, has delivered higher fee income to its parent in the first-half of 2020, as profits of the unit rise alongside its increased assets under management. Lancashire Capital Management grew roughly 20% over read the full article →

ILS can support vast growth opportunity in emerging Asia: Peak Re CEO

There’s a very real and vast opportunity for sustained insurance sector growth across emerging Asia over the next decade, and insurance-linked securities (ILS) capacity will be required, according to executives at Hong Kong domiciled reinsurance company Peak Re. When compared to the rest of the world, property and casualty (P&C) insurance read the full article →

Eclipse Re issues two private cat bonds totalling $56.6m

Eclipse Re Ltd., the Horseshoe managed private syndicated collateralised reinsurance note and private cat bond platform, has completed two new transactions, amounting to just under $56.6 million of risk capital issued around the mid-year renewal season. Eclipse Re Ltd. is a Bermuda domiciled special purpose insurer (SPI) and segregated account company read the full article →

Bermuda SPI guidance update clarifies collateral rollover, release & clawback positions

An update to the Bermuda Monetary Authority's (BMA) guidance notes on special purpose insurers (SPI's), the most commonly used structure for transacting insurance-linked securities (ILS) and collateralised reinsurance, lays out the regulators position on key issues related to collateral rollover, release of collateral and also the subject of clawback. The 2020 read the full article →