Collateralized reinsurance news

Aeolus Capital Management Ltd., the Bermuda based reinsurance and insurance-linked securities (ILS) investment fund manager, has announced the promotion of long-standing team member Fergus Morrison to Partner at the firm.

Speaking this morning in Monte Carlo executives from global reinsurance firm Hannover Re said that the Vesttoo issues with allegedly fraudulent letters of credit (LOC) is an “eye opener” but not systemic and they see no impact to their own pipeline of business in the insurance-linked securities (ILS) market.

Speaking today in Monte Carlo at the annual reinsurance market Rendez-Vous de Septembre event, Thomas Blunck, a Member of the Board of Management at global reinsurer Munich Re, said he does not expect major capital inflows to either the traditional or alternative sides of the market.

Because the current hard market in reinsurance is largely focused on the shorter-tailed lines of business, like property catastrophe risks, Taoufik Gharib, Senior Director at S&P Global Ratings, said today in Monte Carlo that capital may choose to enter through sidecars or collateralized reinsurance instead of new reinsurer startups.

Speaking this morning at an event in Monte Carlo for the 2023 Reinsurance Rendez-Vous, analysts at Fitch Ratings said that the Vesttoo scandal may push investors in insurance-linked securities (ILS) to focus on the safety of structures and the security of collateral.

For global insurance and reinsurance group Everest, the Mt. Logan Re Ltd. third-party capital vehicle is a key strategic priority for the long-term, one that the company intends to grow, COO and Head of Reinsurance Jim Williamson told us.

The Chief Financial Officer (CFO) of the specialist Lloyd’s insurance and reinsurance marketplace, Burkhard Keese, called on the industry to be more diligent in light of the ongoing fraudulent LOC issue surrounding insurtech Vesttoo.

While the industry will spend its time poring over the initial findings of the fraud investigation at Vesttoo, one thing that stands out is the fact internal red flags were raised over the two purported Chinese “investor” groups as early as 2021, while the report also raises a question over whether they are even real […]

The investigation and audit undertaken within beleaguered insurtech Vesttoo by its board, with the help of Kroll, has now filed an initial report, saying that co-founders Yaniv Bertele and Alon Lifshitz were complicit in the fraud, as well as two execs connected to the network that found capital for the company.

W. R. Berkley Corporation, the US headquartered insurance holding company, has ceded 24% more in premiums to its Lifson Re collateralized reinsurance sidecar vehicle in the first-half of 2023, as it made use of the higher level of investor commitments available to it this year.