ILS funds news, insurance linked securities or ILS fund news

Alternative investment specialist, BroadRiver Asset Management, L.P, has successfully raised $366 million from existing and new investors for its life settlement fund, BroadRiver II.

The recent magnitude 7.8 New Zealand South Island earthquake could end up costing the insurance and reinsurance industry as much as US$3.5 billion, according to risk modelling firm AIR Worldwide.

Property Claim Services (PCS) has provided an update to its estimated loss for the insurance industry from the Fort McMurray, Alberta Canada wildfires, lowering it from C$4.67 billion to C$3.98 billion, which is roughly US$2.96 billion.

The loss that will fall to the insurance and reinsurance market due to the damaged turret on the Kwame Nkrumah FPSO (floating production storage and offloading) operating on the Jubilee oil field, Ghana, is set to rise, as the FPSO will remain shutdown to production well into 2017.

Kelvin Re Ltd., the rated reinsurance vehicle operated by Credit Suisse Insurance Linked Strategies Ltd. and backed by an investment from the Abu Dhabi Investment Council, has increased its gross premiums written in 2016 to over $150 million of catastrophe reinsurance cover.

Bermuda-based Iris Reinsurance Ltd., an index and parametric focused third-party capitalised collateralised insurance and reinsurance company, is to report its modelled net asset value on a regular basis as its manager Cartesian Re opts for transparency in ILS.

As the convergence space continues to evolve and traditional and alternative reinsurance capital and structures become more integrated, along with the rise of technology in the sector, market leaders have questioned what this could mean for intermediaries and their role in the value chain.

Secondary catastrophe bond trading picked up towards the end of the month in October 2016 after a slow start to the month. Primary issuance stimulated some trading and the post-hurricane Matthew released pressure on affected secondary marks.

Reinsurance capital looks set to pay for some of the damage caused by this weeks earthquakes in New Zealand, with local insurers having low deductibles and the EQC likely to call on its program as well, but questions of how many events have occurred could complicate matters, as could supply chain interruption.

Microsoft Corp. has revealed that it was a buyer in the first transaction to use the innovative wind farm weather hedging revenue product created by Allianz Risk Transfer (ART) with the help of Nephila Capital.