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.


Retro softened through 2021, with ILW prices down materially: GC’s Cook

The retrocession market failed to harden as hoped for through 2021, with in some cases rapid and material declines in pricing seen, especially in industry loss warranty's (ILWs'), according to Guy Carpenter's Sebastian Cook. Speaking during a recent media briefing, Cook, who is Head of London, Europe at reinsurance broke Guy read the full article →

Flight to quality continues as ILS managers get benchmarked: Lohmann & Matter, Schroders

There is a clear and ongoing 'flight to quality' where ILS funds are concerned, according to Dirk Lohmann, Chairman and Flavio Matter, Head of Origination, ILS, at Schroders Capital. Lohmann (right), a co-founder of the ILS investment management unit, stepped into the newly-created position of Chairman in September 2020, paving the read the full article →

CATCo portfolio continues to develop favourably, recoups 3% on 2017 losses

The retrocessional reinsurance investment portfolio constructed by Markel's CATCo Investment Management is continuing to develop more favourably than had originally been expected, with the firm reporting a reduction of claims in relation to catastrophe events from 2017. The CATCo Reinsurance Opportunities Fund Ltd., the exchange listed, retrocession focused insurance-linked securities (ILS) read the full article →

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 →

CATCo retro fund gains 8% as wildfire claims reduce (possible subrogation)

The CATCo Reinsurance Opportunities Fund Ltd., the listed, retrocession focused insurance-linked securities (ILS) fund strategy managed by Markel CATCo Investment Management, has gained roughly 8% in the last month thanks to a further reduction in claims from 2017 and 2018 wildfire loss events. It's the second time this has happened for 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 →