ESG investment in insurance-linked securities (ILS)

Demonstrating that the returns of Lloyd’s insurance and reinsurance market business remains very attractive to investors, Beazley said this morning that its Smart Tracker special purpose arrangement (SPA) syndicate 5623 is now “significantly oversubscribed by third party capital”.

Investment manager Twelve Capital has explained that it believes the insurance and reinsurance sector has positive attributes as an investment asset class for 2022, with both macroeconomic and idiosyncratic tailwinds expected to drive returns this year.

There is “no doubt” that the positive momentum witnessed in the catastrophe bond market over recent years will continue, according to Judy Klugman at Swiss Re, who anticipates another strong year for the market in 2022.

Parameter Climate, the parametric risk transfer and climate focused underwriter, has announced another key hire, bringing Ralph Renner over from his most recent role at Sompo International, to join the company as a co-founding Partner and its Head of Origination.

Schroders, the global asset manager with a specialist insurance-linked securities (ILS) investment management business, has updated the investment strategy and policy of its flagship UCITS catastrophe bond fund, the Schroder GAIA Cat Bond, to incorporate specific ESG and sustainability features.

Environmental, social and governance (ESG) issues and the ESG appropriateness of investments, emerged as a “major consideration” for both insurance-linked securities (ILS) sponsors and investors during 2021, according to reinsurance broker Gallagher Re.

After the publication of the latest Intergovernmental Panel on Climate Change (IPCC) report earlier this year in August, the Credit Suisse Insurance Linked Strategies team has analysed its findings on climate trends related to severe weather catastrophes and tried to quantify their impacts on the global insurance, reinsurance and insurance-linked securities (ILS).

Laying bare the size of the opportunity in environmental, social and governance (ESG) appropriate investing, tracker of data on the alternative asset management space Preqin has estimated that as much as $3.1 trillion of private capital assets under management could have an ESG focus.

A new report details an opportunity to create insurance solutions to underpin the nature-based carbon market and suggests that securitizing them would be a way to unlock new capital, while feeding investors appetites for insurance-linked investments and an environmental, social and governance (ESG) appropriate asset.

Italian and global insurance giant Assicurazioni Generali S.p.A. has confirmed to investors in its EUR 200 million Lion III Re DAC catastrophe bond that European windstorm Bernd and related floods in July 2021 are not a covered event for noteholders to be concerned about, this publication has learned.