ILS funds news, insurance linked securities or ILS fund news

Alternative capital in the insurance and reinsurance market and across the range of insurance-linked securities (ILS) products reached a new high at $78 billion at the end of the third-quarter of 2016, according to Aon Benfield.

Multi-strategy hedge fund manager Elliott Management Corporation has completed its proposed acquisition of a controlling interest in Aeolus Capital Management Ltd., a leading insurance-linked investment manager focused on collateralized property catastrophe reinsurance and retrocession.

Stone Ridge Asset Management, the beta and alternative risk premia focused mutual fund manager with a range of insurance-linked securities (ILS) funds, has secured commitments of $2 billion from existing investors for its Post-Event ILS fund.

The combined ratios of Florida domestic insurance firms rose by around 13% on average in the third-quarter, as the impact of continuing rate declines and attritional non-catastrophe weather losses hurt the sector, which suggests more reinsurance support was or will be required.

Australian primary insurance giant Insurance Australia Group Limited has renewed its catastrophe reinsurance program for 2017 at a static size of $7 billion, but has added additional multi-year coverage from a number of counterparties.

Beta and alternative risk focused mutual fund manager, Stone Ridge Asset Management, increased its insurance-linked securities (ILS) and reinsurance linked assets under management by just over 2% by October 31st 2016, to $5.054 billion.

Insurance-linked securities (ILS), pure catastrophe bond and reinsurance-linked investment funds have recorded minor impacts due to the New Zealand earthquake in November 2016, but in the same month recovered some ground on an improved hurricane Matthew loss outlook.

Despite the fact that rate declines are expected to slow down at the January 2017 renewals and beyond, for the insurance and reinsurance market 2017 is likely to be even more challenging than the year we’ve just seen, according to Kroll Bond Rating Agency (KBRA).

The Oppenheimer Master Event-Linked Bond Fund, LLC, a catastrophe bond focused investment strategy managed by Caleb Wong at OppenheimerFunds, has beaten its 2015 performance according to its latest annual report, returning 5.5% for the year to September 30th 2016.

The once niche insurance-linked securities (ILS) asset class has matured into an influential part of the global reinsurance industry, helped by its solid performance during financial market turmoil and it’s ability to efficiently allocate capital. In a recent paper, Nephila Capital’s Laura Taylor highlighted such benefits of the space.