Collateralized reinsurance news

Brian Costanzo, Chief Financial Officer at Markel, indicated that the business that is fronted for Nephila Capital through Markel Bermuda Ltd (MBL) is performing very well this year, given the low level of catastrophe losses experienced.

Nephila Capital, the specialist reinsurance and insurance-linked securities (ILS) manager owned by Markel, has continued to grow its stature in the reinsurance market in the last quarter, with catastrophe premiums written growing and as a result the ILS manager has delivered increased fund management revenues to its parent as well.

Artex Capital Solutions, the insurance-linked securities (ILS) market service provider arm of Artex Risk Solutions, has hired Paul Sikuku from Aon to lead its UK Insurance Management Client Service team and work with a range of insurance-linked securities (ILS) clients on risk transformation.

As investor appetite continues to broaden beyond property catastrophe, Vantage Risk is building a “mosaic of capital providers,” matching different investors with different risks, from short-tail cat exposures to long-tail casualty and credit lines, according to Chris McKeown, Chief Executive, Reinsurance, ILS, and Innovation.

As per a survey by Moody’s Ratings, over the next year, reinsurance buyers have indicated a strong preference for catastrophe bonds when it comes to utilising alternative capital, while insurance-linked securities (ILS) funds are expected to see increased demand too.

Franklin Templeton Investment Solutions, the more hedge fund focused part of the global asset manager, has maintained its strongly overweight conviction on the catastrophe bond asset class, while adopting a neutral stance on all other insurance-linked securities (ILS).

As the insurance-linked securities (ILS) industry meets in Bermuda over the next few days at the 2025 edition of the ILS Bermuda Convergence event, the organisers believe that the island is “uniquely positioned to host next-generation risk financing solutions” with its deep connectivity between reinsurance and ILS capital markets.

Broking giant Aon and fronting specialist Clear Blue Insurance have put their trading relationship first to reach an out of court settlement in relation to a lawsuit over the reinsurance letter of credit (LOC) fraud perpetrated by insurtech Vesttoo, Artemis has been told by a number of market sources.

The Government Superannuation Fund Authority of New Zealand has demonstrated its growing appetite to invest into catastrophe bonds and other catastrophe reinsurance opportunities, by adding insurance-linked securities (ILS) specialist Elementum Advisors to its roster of managers this year.

As the global insurance-linked securities (ILS) market evolves and expands, so too do its operational complexities and counterparty risks. This evolution elevates the trustee from a mere administrator to an essential partner, providing the stability and confidence that allows market participants to thrive in an increasingly demanding landscape, HSBC Bank explains.