Collateralized reinsurance news

Underscoring the potential impacts of climate change on the insurance-linked securities (ILS) market, analysts at global asset management group Schroders have suggested the effects “should be marginal” given climate change is gradual and long-term in nature, while ILS instruments typically have a term of one to three years.

In a sign that the Vesttoo saga could be sped through the courts in order to liquidate the insurtech and its assets, to protect value for stakeholders and creditors while avoiding further litigation between parties, a filing by the US Trustee calls for the Chapter 11 bankruptcy case to be converted to Chapter 7.

Insurance and reinsurance broking giant Aon is continuing to work with clients to help the industry replace lost capital following the letter of credit (LOC) fraud at insurtech Vesttoo, Eric Andersen, President of Aon plc said last week.

Aon operated Bermuda-based segregated account company White Rock Insurance (SAC) Ltd. has issued another private catastrophe bond in the Japanese Asagao parametric earthquake series, with a $40 million Asagao VII transaction completed recently.

Vesttoo, the insurtech at the center of an international reinsurance letter of credit (LOC) fraud investigation, is trying to sell off assets of the firm as part of its plans to emerge from the scandal and trade forwards, but creditors are accused by the company of undermining these efforts in a display of brinkmanship.

For global insurance and reinsurance group Everest, the Mt. Logan Re Ltd. third-party capital vehicle is having a strong year, with over $250 million of new capital raised and its assets under management approaching $1.1 billion.

This video features the final session of the day at our Artemis ILS Asia 2023 conference held in Singapore on July 13th 2023, a panel discussion with experienced insurance-linked securities (ILS) investment managers on the state of the market, in Asia Pacific and globally, as well as giving their ILS outlook.

The insurance-linked securities (ILS) market and alternative sources of reinsurance capital are key providers of protection to Florida’s insurance sector and investor appetite for the risk will continue, rating agency Moody’s has said.

With the state of the market viewed as “fragile”, Luca Albertini, Chief Executive Officer and a Founding Partner of Leadenhall Capital Partners, explained to us that discipline is vital in insurance-linked securities (ILS) “for the sustainability of capital.”

Vesttoo has responded to the Official Committee of Unsecured Creditors calls for its liquidation to be accelerated, stating that it has produced “a significant business plan” and that the creditors should give the insurtech the time to deliver what it believes could be a “value-maximizing transaction.”