Collateralized reinsurance news

According to our sources, insurance-linked securities (ILS) fund managers are having continued success at closing down certain exposures to last year’s hurricane Ian, with a number of side pockets being finalised and trapped capital continuing to be freed.

Aeolus Capital Management Ltd., the Bermuda based reinsurance and insurance-linked securities (ILS) investment fund manager, has been the beneficiary of fresh investor client inflows in advance of the mid-year renewals, we understand, taking its overall assets under management (AUM) to $3.9 billion.

We return to London on Tuesday September 5th for our next insurance-linked securities (ILS) market conference, with Artemis London 2023 our second event held in the city and there are now only a few days left to secure a ticket at the best possible price.

Elementum Advisors, LLC, the insurance and reinsurance linked asset manager, has raised additional capital in advance of the middle of the year, with its overall assets under management reaching the $4 billion mark again at June 30th.

One of the key themes to come out of renewals over the last year is a realignment of risk sharing in natural catastrophe risks between the reinsurance market, including ILS funds and alternative capital, and the primary insurers, which positions the reinsurance side to better be able to demonstrate the profit-potential of their businesses this […]

Yesterday’s Artemis ILS Asia 2023 conference marked our first in-person return to Singapore and the Asian region since 2019 and while there are marked differences in the conversation surrounding insurance-linked securities (ILS) and the use of reinsurance capital, it is clear the region remains relatively untapped, on both an investment and risk basis.

Delivering a welcome speech this morning at the Artemis ILS Asia 2023 conference in Singapore, Cheng Khai Lim, Executive Director, Financial Markets Development Department, Monetary Authority of Singapore (MAS), highlighted the need for greater structuring and deal capabilities in Asia, as Singapore continues to streamline its insurance-linked securities (ILS) regulatory regime.

With property catastrophe reinsurance rates and pricing having soared in recent months, rating agency AM Best sees this as a potential headwind for the burgeoning non-cat insurance-linked securities (ILS) segment, as investors focus may shift back to catastrophe risks.

The BofA Securities analyst team say they are increasingly constructive on the reinsurance sector, one reason being that alternative capital growth is not being driven by the collateralized side of the ILS market, while catastrophe bonds are seen as a more compatible instrument and complementary to traditional reinsurance.

Insurance-linked securities (ILS) investment management specialist Nephila Capital has written just over $756 million of the $2.98 billion reinsurance placement by Florida Citizens at the renewals in 2023, but Berkshire Hathaway was the largest participant with a huge $1 billion line.