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.
Adopting a defensive position, with respect to the 2022 hurricane season, has paid off for an industry loss warranty (ILW) focused investment strategy, according to the CEO of the City National Rochdale Select Strategies Fund.
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The portfolios of reinsurance and retrocessional risk transferred to the capital markets, through catastrophe bonds and other insurance-linked securities (ILS), in 2023 are potentially the cleanest ever seen, while record cat bond issuance is a possibility this year, K2 Advisors has said.
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The Board of the Texas Windstorm Insurance Association (TWIA) has heard details of an industry-loss warranty (ILW) option for the top of its reinsurance tower, as the insurer of last resort considered buying more protection than its 1-in-100 requires for 2023.
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The industry loss warranty (ILW) market has softened somewhat, seemingly in-line with the catastrophe bond market, with what were record high ILW rates-on-line now coming in on average roughly 12% lower for the second-quarter of 2022, according to our sources.
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PCS worked with Ariel Re and the structurer, Howden Tiger Capital Markets & Advisory, of the reinsurer’s Titania Re catastrophe bond issuance to create the innovative carbon offset feature, discusses Tom Johansmeyer, Head of PCS, a Verisk business.
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K2 Advisors, the hedge fund focused investment management unit of Franklin Templeton, is bullish on the outlook for the catastrophe bond market in 2023, but longer-term believes investor needs must continue to be met.
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Neville Ching, the former retrocession managing partner at brokerage Capsicum Re, has formally launched ReFlex Solutions Ltd, an independent reinsurance brokerage headquartered in Bermuda with a mission to bring distribution efficiencies and efficient capital to market.
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Swiss-headquartered fintech Cerchia is making progress as it looks to raise around US $200 million from investors and lenders for deployment to a new ILW structure that it believes can help reduce the risk of trapped capital.
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Reinsurance broker Gallagher Re has appointed industry-loss warranty (ILW) and retrocession broker Alex McManus to lead its index-based capabilities in Bermuda.
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With the key January reinsurance renewals having been challenging and characterised by reduced capacity and higher pricing, the focus can often turn to buying hedges such as industry-loss warranties (ILW’s), but a new study highlights some issues investors should be aware of.
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