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.
With the focus of ILS managers now shifting towards the all-important end of year reinsurance renewals, Stephan Ruoff, Global Head of Schroders Capital ILS, explained to us that insurance-linked securities (ILS) portfolio construction and positioning are a key focus at his firm.
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The market for collateralized reinsurance sidecar vehicles has returned to favour, with resilience demonstrated as it returned to growth after two years here it had shrunk back, Aon Securities has explained.
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Since its launch as the first French reinsurance sidecar, CCR Re’s 157 Re vehicle has become an important part of the reinsurer’s property catastrophe play, and further expansion of the sidecar and its capabilities is expected in the future, according to Laurent Montador, Deputy Chief Executive Officer (CEO).
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This video features the sixth session of the day at our Artemis ILS Asia 2023 conference, held in Singapore on July 13th 2023, a panel discussion focused on corporate risk, with reference to risk managers in the Asian region, and the potential for insurance-linked securities (ILS) to play a role in transferring their risk.
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Lloyd’s has issued revised guidance for members and members agents on Tier 2 capital limits, which encompasses the use of letters of credit (LOC) in the marketplace and in it has stressed how important it is that LOC’s have their validity confirmed on a regular basis.
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PGGM, the Dutch pension fund investment manager that allocates the largest amount to the insurance-linked securities (ILS) market on behalf of end-client the Dutch pension PFZW, now looks after a portfolio that was valued at just over US $8.8 billion (EUR 8.1bn) at the mid-point of 2023, which has grown further above its strategic allocation […]
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The committee of unsecured creditors in the Chapter 11 bankruptcy case of insurtech Vesttoo has now been approved to begin conducting legal discovery on the company after the judge issued an order approving discovery at a hearing yesterday.
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A Bermuda Supreme Court hearing held on Friday, to look into the issue of segregated cells that housed reinsurance deals affected by the Vesttoo letter of credit (LOC) fraud and fake collateral issues, resulted in an adjournment of the case until December 1st, the Royal Gazette has reported.
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Private ILS funds, so those allocating to collateralised reinsurance and instruments other than catastrophe bonds, saw a very strong August as seasonality boosted the average returns of this segment of the market to 1.67%, according to ILS Advisers.
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Stone Ridge Asset Management, the New York based asset manager an alternative risk premia focus, has clearly demonstrated a strong return to growth for its mutual insurance-linked securities (ILS) fund strategies, adding 24% in ILS assets in the last quarter of record and with its cat bond focused strategy reaching a new high of $2.1 […]
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