ILS funds news, insurance linked securities or ILS fund news

Reinsurance capital levels experienced additional downward pressure through the second-half of 2022 according to Guy Carpenter, but the broker also highlighted some new capital inflows in the final month of the year.

The reinsurance market is renewing much harder at these 1/1 2023 renewals and while the market resets its pricing baselines higher, for property and catastrophe risk in particular, we ask can those baselines be sustained this time around?

Use of insurance-linked securities (ILS) such as catastrophe bonds increased among Bermuda-based insurance and reinsurance firms  in 2021, according to recent data collected by the Bermuda Monetary Authority (BMA).

According to Artemis’ sources there have been some signs of increased appetites among certain markets, but in general the ongoing and yet-to-clear January 2023 reinsurance renewals have exposed a gulf between property catastrophe capacity and demand for cover.

Peter Zaffino, the CEO of insurance giant AIG, sees the current hardening reinsurance market environment as a “solid growth opportunity” for the firm’s Bermuda-headquartered reinsurer Validus Re.

With the 1/1 2023 reinsurance renewals fast approaching, investor Amundi US says it is “very constructive” on the insurance-linked securities (ILS) asset class, thanks to the favourable pricing trends.

Due to the range of influences and factors affecting catastrophe bonds and insurance-linked securities (ILS) this year, Nelson Seo, Co-Founder and Managing Director of Fermat Capital Management, believes this could be the best ILS investment environment ever.

The outlook for the end of year reinsurance renewals may not be saved by a cavalry of ILS capital, coming in at the last minute to fill holes in programs this year, but our sources suggest pockets of successful capital raising from investors are being seen, allowing some to capitalise on the 1/1 rate opportunity.

Vantage Risk, the Bermuda headquartered insurance and reinsurance company, has put together close to $1 billion of capital for deployment into property catastrophe reinsurance opportunities around the 1/1 2023 renewals, using its AdVantage collateralized insurer class of company.

The New Zealand Superannuation Fund (NZ Super Fund), one of the government pension investment providers, has once again grown its investments linked to insurance and reinsurance over the past year, with an increase in allocation evident across all of the strategies it invests in.