ILS funds news, insurance linked securities or ILS fund news

Primary insurance carriers are facing rising reinsurance costs and rating agency A.M. Best warns them to expect this to become an added pressure to their earnings, but not to increase their risk profiles by using less of it.

Pacific Gas and Electricity (PG&E), the wildfire liability California focused electrical utility company, has now agreed the last of its major settlements with wildfire claimants, with a $13.5 billion agreement with individuals removing another hurdle that has stalled subrogation payments from making their way to beneficiaries.

There is a new reinsurance and insurance-linked securities (ILS) collateral trust provider in town, after Truist Financial Corporation was formed after a merger of equals between SunTrust and BB&T.

Global Parametrics, the parametric and index-based disaster risk transfer company, has launched a new natural catastrophe focused investment fund that has received backing from global reinsurance firm Hannover Re and the German government.

There are only two months to go until we hold our ILS NYC 2020 conference, so register soon to ensure you can attend at the best possible price.

The government of the Philippines continues to expand its natural catastrophe related insurance and risk transfer provisions, with the latest step being a roughly US $19.6 billion cover for certain state assets, for which it is now seeking private market reinsurance protection.

Global reinsurance market conditions are said to be improving by rating agency A.M. Best, who maintains a stable outlook on the sector, but sees traditional reinsurance capital becoming increasingly dependent on third-party sources of capacity and ILS.

Climate change adaptation projects and the need for them are rising up the agenda, as a recent surge in damages from severe weather and climate related catastrophe events concentrates the mind on the importance of investing in this area.

Investors in traditional reinsurance companies are anticipating that the end of year renewals will reveal a “reinsurance pricing story” and this has already been baked into share prices, meaning reinsurers that fail to hold out on rates could risk disappointing their shareholders.

Railway Pension Investments Limited (RPMI Railpen), the dedicated investment manager that looks after the pension fund for UK railway’s workers, has hired a sector specialist in insurance-linked securities (ILS) from Willis Towers Watson (WTW) as an investment manager.