ILS funds news, insurance linked securities or ILS fund news

Merion Square Capital LLC has been launched today as a new insurance-linked securities (ILS) fund manager with $150 million of initial capital commitments, by ILS and collateralized reinsurance specialists Rewire Holdings LLC alongside alternative investment manager Vida Capital Inc.

The estimated total insurable loss for the recent cyber hack attack and resulting data breach of one of the Marriott hotel chain’s reservation systems will be between $200 million to as much as $600 million, according to AIR.

Markel CATCo Investment Management Ltd., the retrocessional reinsurance investment specialist, has announced further reserve setting and strengthening related to catastrophe loss events that occurred in 2018 and are expected to hit its listed retro fund portfolio.

Insurance-linked securities (ILS) capacity is helping to fill the disaster gap left by the traditional insurance and reinsurance industry, with dynamics set for “substantial ILS market growth” in the future, according to John Seo, Co-Founder and Managing Director of Fermat Capital.

Lower risk and volatility insurance-linked securities (ILS) and collateralised reinsurance funds have fared surprisingly well in the face of the aggregated impact of 2017 and 2018 catastrophe losses, positioning some to take advantage of investor appetite.

Insurance-linked securities (ILS) cells established in Guernsey will benefit from formalised collateral rollover provisions, including confirmation of a 30-day grace period at the start of a transaction where an ILS cell would not be considered in breach of its fully-funded requirements.

Both of the rated reinsurance vehicles that are managed by and backed by capital from the Credit Suisse Insurance Linked Strategies Ltd. team have had their ratings affirmed by A.M. Best, despite suffering losses from the catastrophe activity through 2018.

The gap in terms of fronting services for collateralised and ILS markets left by the acquisition of Tokio Millennium Re by Bermudian reinsurer RenaissanceRe is being filled we’re told, as the usual suspects look to take on any of that business they find attractive.

Cyber risk is increasingly showing signs of becoming a peak peril and as the insurance-linked securities (ILS) sector continues to look for growth it makes sense to focus on these peak levels of the insurance and reinsurance risk tower, according to Joanna Syroka, Director of New Markets, Fermat Capital Management.

Global markets and Latin America focused asset manager BTG Pactual Asset Management has completed its acquisition of Lutece Re Ltd., the Bermuda based reinsurance linked investments manager.