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.


Generali targets lower price for first green cat bond, Lion III Re

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 →

Renewed investor demand drives catastrophe bond spreads lower: Moody’s

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 →

The only asset class that helps people rebuild after natural disasters

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 →

Generali targets EUR200m Lion III Re “green cat bond”

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 targets $500m capital raise to become sustainable ESG insurer

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 climate change implications should not prevent action: Aeolus

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 →

ILS is a growing part of the ESG mosaic, say industry experts

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 cat bond & insurance funds classed Article 8 & 9 under EU SFDR

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 →

Industry must ‘step up’ to be really attractive for ESG investors: Rivaldi, Twelve Capital

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 →

Artemis Live: Interview with Luca Albertini & Jillian Williams, Leadenhall Capital Partners

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 →