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.
Lumen Re, the main reinsurance underwriting vehicle of LGT ILS Partners, the specialist dedicated insurance-linked securities (ILS) investments unit of the private bank and asset manager LGT Capital Partners, has seen its loss ratio reduce significantly, according to rating agency AM Best.
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Nectaris Re Ltd., the Class 3A Bermuda-based rated reinsurance underwriting platform backed by London headquartered specialist insurance linked securities (ILS) and reinsurance related investments manager Leadenhall Capital Partners LLP, has been writing more open market risks to target the hard reinsurance rates that are available.
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Bernina Re Ltd., the Bermuda based reinsurance underwriting and transformer vehicle backed by capital from funds managed by Credit Suisse Insurance Linked Strategies Ltd., has delivered an underwriting profit of $8.9 million for 2022 at a 75.4% combined ratio.
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Aon Securities, the capital markets and investment banking arm of the insurance and reinsurance broker, has hired experienced insurance-linked securities (ILS) market executive Paschal Brooks.
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Having launched its new $250 million Outrigger Re collateralized reinsurance sidecar at the end of 2022, White Mountains re/insurer subsidiary Ark is already benefiting, with the additional capital helping it to grow its premiums written in the attractive market environment.
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Eclipse Re Ltd., a private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform owned and operated by Artex Capital Solutions, has completed the issuance of two private cat bond arrangements totalling almost $18.8 million of risk capital issued.
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Demonstrating the attactiveness of insurance-linked securities (ILS) investments at this time, the Eurekahedge ILS Advisers Index has delivered its highest returns for a first-quarter of any year since 2007.
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Insurance-linked securities (ILS) capital providers need to see “proof-points” of the market delivering on its promises and ultimately returns, before any meaningful inflows return to the collateralised reinsurance side of the ILS market, Hiscox Group CEO Aki Hussain explained today.
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In reporting its results this morning, Hiscox Group disclosed that its Hiscox ILS business experienced $148.4 million in net outflows of capital during the first-quarter of 2023, which the company said was “consistent with our expectations of a general trend in the sector.”
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The UK’s Prudential Regulation Authority (PRA) of the Bank of England, the main financial regulator, continues to place great emphasis on making its insurance-linked securities (ILS) regulatory regime a success and is now promising “accelerated authorisation” for what it terms “credible” sponsors.
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