Industry loss warranties news

News and articles about industry loss warranties (ILW). Industry loss warranties (ILW’s) are typically a fully-collateralised reinsurance transaction, often known as simply an ILW.

Industry loss warranties provide mainly retrocessional reinsurance protection, on an industry-loss trigger basis and can be structured as a derivative or swap, or a traditional reinsurance arrangement.

Industry loss warranty contracts (ILW’s) are popular hedging tools for global reinsurance firms, enabling them to 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.

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Cat bonds & ILW’s to benefit in any post-Covid-19 ILS market expansion: S&P

More predictable and transparent insurance-linked securities (ILS) structures, offering less ambiguous coverage, may be the immediate winners after the Covid-19 pandemic crisis, with catastrophe bonds and industry loss warranty (ILW) contracts an area set to receive increasing investor focus, according to S&P. S&P Global Ratings asked in a recent report whether read the full article →

Reinsurers withhold renewal capacity, as Berkshire & D.E. Shaw quote more

Some reinsurance firms and also a number of insurance-linked securities (ILS) funds have been holding back capacity in the hopes of finding a less competitive and even more profitable market opportunity after the main mid-year renewals are over, as cedents are expected to need additional top-up and hedging capacity. But adding read the full article →

Everest Re adds to hedges with ILW’s, Mt. Logan Re AuM stays flat

Everest Re, the global insurance and reinsurance firm, has been buying hedging protection in the form of industry-loss warranty (ILW) coverage in 2020, while catastrophe bonds and its Mt. Logan Re collateralised reinsurance vehicle also continue to play a key role in its protection for the all-important hurricane season. Speaking during read the full article →

Hiscox buys $100m of industry loss warranty (ILW) protection

Hiscox Group, the Bermuda headquartered re/insurer, has acquired additional retrocessional reinsurance protection against peak catastrophe risks with a $100 million slug of industry loss warranty (ILW) based protection secured in advance of the all-important hurricane season. Hiscox, as we reported earlier today, is taking a range of capital actions to ensure read the full article →

Expect silent pandemic risk in large insurance programs: Johansmeyer, PCS

Head of PCS, Tom Johansmeyer, tells Artemis that there’s a real sense across the marketplace that certain large, complex insurance towers are going to be affected by silent pandemic risk. Johansmeyer spoke with us in a recent video interview, which you can view in full along with our other video content read the full article →

Markel CATCo and D.E. Shaw in collateral release dispute

Retrocessional reinsurance focused fund manager Markel CATCo Investment Management and tech focused hedge fund investor with a liking for reinsurance-linked returns D. E. Shaw & Co. are involved in a dispute over a release of collateral related to industry-loss triggered derivative contracts, we have learned. Publicly available court documents seen by read the full article →

Artemis Live: Interview with Tom Johansmeyer, Head of PCS

We've launched a new audio and video feature that will see us talking with leaders of the insurance-linked securities (ILS) and reinsurance industry and broadcasting them via our YouTube channel. Like everyone else, the shift to remote working that comes with the global coronavirus lock-down has made us think differently about read the full article →

City National Rochdale ILW fund grows, sees dynamic & improving returns

City National Rochdale's industry loss warranty (ILW) focused mutual insurance-linked securities (ILS) investment fund grew during the last quarter and saw "positive opportunities" at the January reinsurance renewals, with an expectation of the ILW market seeing dynamic conditions and improving returns. The City National Rochdale Select Strategies (CNRLX) is a mutual read the full article →

Silent pandemic risk & how to hedge it – Q&A with Tom Johansmeyer, PCS

Silent pandemic risk as akin to silent cyber. It's an exposure that is potentially secreted deep inside numerous lines of insurance and reinsurance business, with claims governed by contractual fineries and wordings. As a result it's an exposure that is hard to quantify, but that may require hedging. At a time read the full article →

ILW pricing rises after renewals for US, EU & JP coverage triggers

Indicative pricing for industry-loss warranty (ILW) structured retrocessional reinsurance protection has risen for U.S. and European wind and storm related perils, with some relatively significant increases seen at certain trigger levels. These recent increases to indicative ILS pricing and rates-on-line have only been applied to certain broker pricing sheets after the read the full article →