Industry loss warranty news

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

Industry loss warranty contracts 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 warranties (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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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 →

CATCo retro fund benefits from further $19.2m trapped capital release

The CATCo Reinsurance Opportunities Fund Ltd., the stock exchange listed retrocession focused strategy managed by Markel CATCo and in run-off at this time, is continuing to benefit from reducing loss exposure and releases of side pocketed investment capital. As we've previously explained, the running-off and return of capital of the CATCo read the full article →

Strong ILW demand at January renewal, more expected in June: CNR

Investment adviser City National Rochdale (CNR) explained that strong demand was seen for industry-loss warranty (ILW) capacity at the January 2021 reinsurance renewals and with capacity for this market still seen as more limited, more of the same is expected for June. The adviser offers the City National Rochdale Select Strategies read the full article →

CATCo’s return of capital continues apace, but Jebi & Michael creep hits 2018

The CATCo Reinsurance Opportunities Fund Ltd., the stock exchange listed retrocession focused strategy managed by Markel CATCo and in run-off at this time, has now seen $271.3 million of capital returned to its investors since its run-off began. The $271.3 million of capital has been returned to shareholders in the CATCo read the full article →

Lockton Re hires ex-CATCo CUO Simon Moore

Lockton Re, the reinsurance business of the privately held independent global broking firm, has hired Simon Moore, the former Chief Underwriting Officer of CATCo, as a Senior Broker within its Non-Marine Retrocession & Property Specialty team in London. Moore had joined collateralized retrocessional reinsurance investment fund manager CATCo back in 2015, read the full article →

In uncertain times, industry loss triggers make sense: Johansmeyer

In light of current market conditions and a heightened awareness about the hidden costs of UNL or indemnity business, it makes sense to leverage the industry loss index product, according to Tom Johansmeyer, Head of PCS. Industry loss metrics provided by PCS are extremely valuable for the industry and increasingly utilised read the full article →

Lockton Re hires Aon ILW practice head Parcell in Bermuda

Lockton Re, the reinsurance business of the privately held independent global broking firm, has announced a key hire in Bermuda, taking Thomas Parcell from Aon as its new Chief Broking Officer on the island. Lockton Re has been building out its Bermuda platform of late and Parcell marks a key move read the full article →

Stonybrook automates ILW price sheets with ILWBroker.com service

Stonybrook Capital, a specialist strategic advisory and investment banking firm focused exclusively on the insurance and reinsurance industry, has developed a service to make pricing of industry loss warranty (ILW) contracts more readily available and transparent. We’ve highlighted issues surrounding the pricing of industry-loss warranties (ILW’s) and broker’s pricing sheets before, read the full article →

We’re at the start of an industry-loss trigger adoption wave: Johansmeyer at ILS NYC 2021

It’s just a matter of time before the use of industry loss triggers for risk transfer transactions broadens and is more widely used, which in turn will unlock more diversifying risk into certain sub-sectors of the insurance-linked securities (ILS) space, according to Tom Johansmeyer, Head of PCS. The fifth annual Artemis read the full article →

CATCo retro fund rises 7% on reduced 2017 wildfire claims (subrogation?)

Some shareholders in the CATCo Reinsurance Opportunities Fund Ltd., Markel CATCo Investment Management’s listed retrocession focused investment fund, have benefited from a reduction in claims related to California's 2017 wildfires, perhaps suggesting a subrogation recovery has made its way through to the portfolio. The in-run off retrocessional reinsurance focused investment fund's read the full article →