ILS, cat bonds & reinsurance, an asset class to offset a crisis

There's a new strategic asset class in town, the Crisis Risk Offset (CRO), a select group of assets that could provide returns and liquidity during an economic growth crisis, and one of the assets considered able to offset a crisis for investors is ILS and reinsurance. According to a study undertaken read the full article →

Liquid alternative allocations to grow, cat bonds & ILS will benefit

Institutional investors are set to increase their allocations to investment strategies which fall into the 'liquid alternatives' classification, which typically means a UCITS or 40 Act strategy investment fund, neatly fitting the mold of some catastrophe bond and ILS funds. Liquid alternatives have been becoming increasingly popular for some investors that read the full article →

As asset class correlations rise, attraction to ILS & cat bonds increases

Managers of large multi-asset class investment funds are showing signs of concern that correlation levels between asset classes may break down, with their portfolio adjustments suggesting a shift towards assets that can protect investments. Financial market have been difficult to predict in recent years and the correlation between asset classes a read the full article →

Insurance-linked security rates decline, returns rise in third quarter: Lane Financial

Lane Financial LLC, a consulting firm and broker-dealer focused on the insurance-linked security, catastrophe bond and associated sectors or reinsurance, published their latest quarterly ILS market report yesterday. As always, the report contains a deep statistical view of the outstanding ILS and cat bond market using their own proprietary Lane read the full article →

Correlation between insurance-linked securities returns and S&P500 returns declines

We like to bring you interesting data points about the catastrophe bond and insurance-linked security market here on Artemis. Today we have a really interesting chart showing the correlation of ILS returns with the S&P500 from the latest quarterly ILS market report published yesterday by Lane Financial LLC, a consulting read the full article →

Investment losses at hedge fund backed reinsurers show correlation risk

Correlation is a word that often crops up in articles here on Artemis and within the financial services industry as a whole. Correlation can be better understood as an interdependence, mutual relationship or connection between two or more things. In the risk and reinsurance markets we cover, we use the read the full article →

Catastrophe bonds demonstrate resilient returns

More positive news in the global financial press today for catastrophe bonds as Bloomberg (here on the SF Gate website) discusses the returns the market has offered since the earthquake in Japan struck and dented the markets confidence. They compare the returns of an index of cat bonds with the read the full article →

Understanding the true nature of insurance-linked securities correlation

The correlation of insurance-linked securities to other asset classes and the financial markets in general is always a topic of much discussion among investors and market participants alike. Ever since the collapse of Lehman Brothers and the resulting fallout on a number of catastrophe bonds which used a Lehman subsidiary read the full article →

Catastrophe bonds and their evolution to address credit risk

2009 has been the year that catastrophe bonds evolved to avoid the credit risk issues of the past caused by reliance on a total return swap counterparty for collateral. After the credit crisis proved that all financial instruments have some degree of correlation to the wider financial markets transactions completed read the full article →