ESG investment in insurance-linked securities (ILS)
ESG investing is a growing focus for the insurance-linked securities (ILS) market.
Insurance-linked securities (ILS) are often assumed to be naturally compatible with and applicable to environmental, social, governance (ESG) investment mandates and standards.
Certainly, ILS such as catastrophe bonds have ESG relevant features, in providing disaster risk financing to support recovery and repair after severe weather events or natural disasters.
But the true application of ESG investment standards to reinsurance and ILS assets requires much deeper thought and the industry continues to work towards provision of truly ESG compatible ILS investment opportunities.
Italian and global insurance giant Assicurazioni Generali S.p.A. is aiming to secure its first green catastrophe bond deal, the EUR 200 million Lion III Re DAC cat bond, at tighter spreads, as price guidance has fallen for the issuance. This is Generali's first catastrophe bond since 2017 and the first we've read the full article →
In a new report referencing Artemis Deal Directory data, Moody's Investors Service highlights that renewed and rising demand for catastrophe bonds among insurance-linked securities (ILS) investors has served to drive spreads lower. As we've been explaining over recent weeks, spread tightening in the catastrophe bond issuance market has now driven multiples read the full article →
A core reason that insurance-linked securities (ILS), such as catastrophe bonds and other reinsurance linked investments, are considered as socially responsible investments by many allocators is the fact they deploy their capital into natural disaster recovery and rebuilding. While ESG, environment, social and governance factors, are now seen as becoming critical read the full article →
Italian and global insurance giant Assicurazioni Generali S.p.A. is back in the catastrophe bond market with its fourth issuance, a EUR 200 million Lion III Re DAC cat bond through which it is seeking collateralized catastrophe reinsurance while adding "green" features to a cat bond issue. It's Assicurazioni Generali's first cat read the full article →
Parhelion, an energy and climate risk finance focused company specialising in non-traditional risk issues, is targeting a capital raise of $500 million as it seeks to become a "sustainable insurer" focused on ESG aligned underwriting and investment. Launching its capital raise with initial backing from insurance and reinsurance broking group Howden read the full article →
Uncertainty around the potential implications of climate change for the insurance and reinsurance industry should not be a barrier to incorporating climate-related risk analysis into decision making, according to Aeolus Capital Management Ltd. In the first of a series of research papers on climate change and its implications for those underwriting read the full article →
As responsible and sustainable investing continues to gain traction, the insurance-linked securities (ILS) asset class is expected to play an increasing role, but it’s important that the sector tells its own environmental, social and governance (ESG) story. This is according to ILS and reinsurance industry experts speaking recently at the virtually read the full article →
Plenum Investments AG, the Zurich based specialist insurance-linked securities (ILS) and catastrophe bond investment manager, has had its catastrophe bond, insurance private debt and life settlements investment funds all classified as ESG relevant under the EU’s Sustainable Finance Disclosure Regulation (SFDR). Plenum has been one of the most proactive insurance-linked securities read the full article →
If the global risk transfer industry ramps up its efforts around transparency, it would become a far more attractive space for the growing pool of environmental, social and governance (ESG) focused investors, says Marcus Rivaldi, Managing Director of Analytics at Twelve Capital. The universe of investors seeking responsible and sustainable investments read the full article →
For our latest Artemis Live video interview we spoke with specialist insurance-linked securities (ILS) fund manager Leadenhall Capital Partners' CEO Luca Albertini and CUO Jillian Williams, who gave us an update on their current view of the ILS and reinsurance market and also explained more about environmental, social and governance read the full article →