Diversification a benefit, as long as it’s for the right reasons: S&P

A report from rating agency Standard & Poor's highlight the benefits diversification can bring to a reinsurance or insurance business model, but only so long as the company is diversifying for the right reasons, which raises questions given the current soft and challenging market. For the majority of reinsurance or insurance read the full article →

Roundtable: Achieving optimum diversification in ILS investing

Diversification, how important is it and what options does the ILS market offer? This roundtable, titled ‘Achieving optimum diversification: understanding liquidity, volatility and performance risks for uncorrelated yield’, discusses these questions and more. This roundtable is taken from the recently published report by specialist financial services, pensions and investments publisher Clear read the full article →

ILS faces battle for diversifying perils, as traditional reinsurers hold on

The insurance-linked securities (ILS) market, of catastrophe bonds and fully-collateralized alternative reinsurance capital structures, faces a battle for access to diversifying perils as traditional reinsurers look set to compete strongly for this segment of the market. Access to diversification, be that through peril, geography, line of business or attachment layer, is read the full article →

Expanding the insurance-linked securities and catastrophe bond universe of risks

The insurance-linked securities and catastrophe bond market covers a broad universe of risk considering its size of near $15 billion. Having begun with a focus on natural perils, with the first transactions coming to market in 1996/7, the ability to securitize risks and sell the resulting notes to investors, there read the full article →

Insurance-linked securities investors hope for diversifying deals this summer

We're starting to hear rumblings from a number of insurance-linked securities (ILS) and catastrophe bond investors that the high volume of cat bonds brought to market this year is beginning to have an impact on ILS funds and investors ability to diversify their portfolios. The speed with which new deals read the full article →

The fluctuating mix of perils making up the catastrophe bond market

It's interesting to take a closer look at the mix of perils that make up the catastrophe bond market and to compare the way that mix changes over time. In recent years the dominance of the cat bond market by U.S. hurricane risks has been a defining feature and that read the full article →

2012 catastrophe bonds indicate gradual expansion of the markets scope

The mix of perils and the underlying structure of some recent catastrophe bond transactions point to a gradual expansion of the cat bond markets scope and offer investors new sources of diversification. The inclusion of new perils within some cat bonds while other deals focus on a specific peril and read the full article →

Catastrophe bond market still overexposed to U.S. wind

As much as 68% of the outstanding non-life insurance linked securities and catastrophe bond market was exposed to U.S. hurricane risks at the end of 2011 according to the fourth quarter ILS market update from Willis Capital Markets & Advisory. And so continues the trend for the cat bond market read the full article →

Diversity in the outstanding cat bond & ILS market at year end 2011

Diversity and the hunt for diversification are key topics which regularly come up in our articles, our discussions with participants in the market and our coverage of deals and transactions in the catastrophe bond and insurance-linked securities spaces. Diversity is a factor which enables the market to grow, encourages investors read the full article →

Pension money continues to flow into ILS space, but diversification is key

The insurance-linked securities market saw steady issuance during 2011 and still managed to achieve near $5 billion of new issuance despite the disruptions to the market caused by new risk models and large catastrophe events, says Towers Watson in their January report on the P&C re/insurance market (available here). Sponsors read the full article →