Insurance-linked investments

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Risk managers & C-Suite lack understanding of parametric risk transfer

The insurance and reinsurance industry has much more to do to promote parametric risk transfer and other alternative risk strategies, as both risk managers and the C-Suite of major corporations lack a clear understanding of its benefits.The increasing availability and abundance of data and advanced analytics tools, combined with alternative read the full article →

ILS has “superior historical performance” over the long-term: Researchers

Recent analysis on the return drivers of insurance-linked securities (ILS) shows that over a 15-year period, ILS funds have recorded a superior historical performance when compared with other asset classes.In a recent article, Alexander Braun and Martin Eling of the Institute of Insurance Economics, University of St. Gallen in Switzerland read the full article →

CATCo listed fund NAV’s continue rise, but shares priced far below

On a net asset value (NAV) basis, the CATCo Reinsurance Opportunities Fund continued to deliver positive NAV returns in July, but at the same time the share price continues to languish, as much as 135% below their net asset value in the case of one class.Of course, the CATCo Reinsurance read the full article →

Analytics unlock tangible value, says Swiss Re (for ILS funds too)

The use of advanced technology and data analytics can bring multiple benefits to insurance and reinsurance firms, according to Swiss Re, which we would add holds true also for insurance-linked securities (ILS) players.Using increasingly advanced analytics can deliver benefits that help insurance and reinsurance firms achieve growth, better optimise their read the full article →

Jebi above 1-in-40-year loss, development could continue: S&P

Typhoon Jebi's impacts on the global insurance and reinsurance market is already above the 1-in-40-year loss level, according to estimates from S&P Global Ratings, who also warn that further material developments cannot be ruled out.Typhoon Jebi will account for more than 15% of the top-20 global reinsurance firms catastrophe budgets, read the full article →

FHCF renews reinsurance at flat pricing, using more third-party capital

The Florida Hurricane Catastrophe Fund (FHCF) has renewed its reinsurance program at a slightly smaller size of $920 million, but with flat pricing and insurance-linked securities (ILS) players taking a slightly larger share in 2019.Leading the ILS market participation in the FHCF's 2019 reinsurance renewal was Fermat Capital Management, which read the full article →

ILS is insulation for adverse mortgage insurance losses: NMI CEO Merkle

Mortgage insurance specialist NMI Holdings, Inc. successfully completed its third and largest insurance-linked securities (ILS) transaction, the $327 million Oaktown Re III Ltd., and CEO Claudia Merkle highlighted how these capital market backed reinsurance transactions insulate it against adverse losses.NMI returned recently to secure $327 million of excess of loss read the full article →

AXIS Capital lifts third-party capital assets managed to $2.1 billion

Bermuda headquartered insurance and reinsurance firm AXIS Capital Holdings Limited has lifted the amount of third-party capital assets under its management to a new high at $2.1 billion.AXIS Capital’s third-party capital management business has continued to steadily build, with the insurance and reinsurance firm using an increasing amount of quota read the full article →

ILS to be integral to mortgage insurers’ risk transfer: Capsicum Re’s Mathews

The type of growth witnessed in mortgage insurance-linked securities (ILS) transactions in 2018 is most likely to be replaced with a more normalised growth rate, with ILS capacity expected to become an integral part of mortgage insurers’ programmes, according to Capsicum Re’s Stephen Mathews.Since the first two Bellemeade Re transactions read the full article →

Jebi shows ILW triggers are better when official & supported

The rising insurance and reinsurance industry loss from 2018's typhoon Jebi in Japan has caused what some are privately terming chaos in the industry-loss warranty (ILW) market, as two widely used but unofficial trigger data sources still show estimates at below $10 billion.Industry loss warranties (ILW's) are relatively simple risk read the full article →