ILW news

News and articles about ILW contracts. ILW’s are typically a fully-collateralised reinsurance transaction, better known as an industry loss warranty (ILW).

ILW’s provide mainly retrocessional reinsurance protection, on an industry loss trigger basis and can be structured as a derivative or swap, or a traditional reinsurance contract.

ILW’s are popular hedging tools for global reinsurance firms, who can hedge their broad industry exposure to major catastrophe losses using a contract that pays out based on the industry-wide loss experience from an event.


Cat bond & ILW activity help drive PERILS-based transaction limit higher

An increase in use of PERILS industry loss triggers in industry-loss warranty (ILW) transactions focused on European windstorm risk, plus the buoyant catastrophe bond market, have helped to drive PERILS-based limits at risk up 11% to US $3.2 billion, as of the end of August. PERILS AG, the Zurich-headquartered provide of read the full article →

Capital is valued and respected: Everest Re CEO Andrade

Having access to diverse and efficient sources of capital and ensuring they are treated as equal is increasingly a key trait of a successful reinsurance company, something the CEO of global player Everest Re clearly understands. Insurance-linked securities (ILS) investors and funds have often been treated, or perceived, by re/insurers as read the full article →

Everest Re grows strongly in reinsurance, catastrophe losses ahead of prior year

Global insurance and reinsurance company Everest Re has reported a strong second-quarter of results, with its reinsurance book expanding almost 40% on a gross premium basis, but with catastrophe losses a little ahead of the prior year. The set of results reported by Everest Re bode well for the firms Mt. read the full article →

City National Rochdale ILW fund grows net assets 9% to $168.4m

The industry-loss warranty (ILW) focused mutual fund strategy offered by investment adviser City National Rochdale (CNR) has grown its net assets by roughly 9% during the last quarter of record. While overall net assets grew by 9%, the investments held by the fund, which are largely in industry-loss warranties (ILW's), as read the full article →

ILW market continued to soften like cat bonds into July renewal: Willis Re

The market for industry-loss warranty (ILW) protection continued to soften into the July renewal, broker Willis Re has explained, which appears to be a continuation of the trend seen pre-June, as these structures followed the catastrophe bond market's pricing. More predictable structures have proven incredibly popular among insurance-linked securities (ILS) investors read the full article →

Everest Re targets “significant” Mt. Logan growth, expanded ILS capital use: CEO

Everest Re is aiming to expand its access to third-party and alternative sources of reinsurance capital, with growth of its Mt. Logan Re sidecar-like structure seen as a key strategic opportunity, according to its CEO. Third-party capital is seen as one of global re/insurer Everest Re's three reinsurance strategy drivers, the read the full article →

Industry-loss warranty (ILW) market softens YoY as capacity rises

Following conversations with a number of market sources, it seems that the market for industry-loss warranty (ILW) protection has softened year-on-year, following on the heels of the catastrophe bond market as capacity turns its attention to ILW's in the run up to the renewals. Just the other day we explained that read the full article →

Price Forbes hires retro & ILW broker Nicolas Bardon in Bermuda

Global independent brokerage Price Forbes has announced a new key hire in Bermuda, as the company appointed Nicolas Bardon as Executive Vice President, bringing retrocessional reinsurance and industry-loss warranty (ILW) capabilities to the firm. Bardon is a specialist retro broker and industry loss warranty (ILW) are a key product offering he read the full article →

Florida ILW price indications up as much as 50% year-on-year

With the Florida reinsurance renewals fast approaching, it's interesting to learn that indicative pricing for industry-loss warranty (ILW) protection covering hurricanes affecting the state is up significantly year-on-year, but actual market pricing may be flat or even down. Please read our update at the foot of this article. The market for read the full article →

ILW market attention shifting to mid-year hedges and Florida: Willis Re

The industry loss warranty (ILW) market saw pricing spike to levels aligned with the pre-mid year 2020 market, as attention shifts to arranging hedges and covering Florida exposures, broker Willis Re has said. The industry loss warranty (ILW) market, which is predominantly a source of capital market backed retrocessional reinsurance and read the full article →