Insurance-linked investments

Broking giant Aon has announced the hire of Ed Thomas as its new Head of Lloyd’s Capital, with the new addition bringing experience gained in the development of the London Bridge insurance-linked securities structures specific to the Lloyd’s marketplace.

Insured losses from natural catastrophes are expected to continue rising faster than economic growth and while, for now, the insurance and reinsurance market recalibrates its models to these higher loss trend, it requires more resources (capacity) to meet this growing need for disaster protection, Swiss Re has explained.

Depending on the outcome of the hurricane season and the occurrence of other catastrophes, investors in catastrophe bonds could be on-track to meet or even exceed target returns in 2024, with cat bond market yields still elevated and the fundamentals of the insurance-linked securities (ILS) market strong, analysis from Twelve Capital explains.

Quota share reinsurance focused investment manager Tangency Capital Ltd. has had continued success in raising assets through the first-half and mid-year renewal season, adding $400 million in assets to reach now $1.8 billion in ILS AUM.

Brookmont Capital Management, LLC, an SEC registered investment manager, has launched a prospectus for the Brookmont Catastrophic Bond ETF, a new exchange traded fund strategy that will be predominantly focused on the catastrophe bond and insurance-linked securities (ILS) asset class.

Reinsurance broker Guy Carpenter is rolling out a new parametric flood product that has been designed to enable risk transfer for large portfolios of exposure across wide-areas. The FloodShield triggers are structured with the help of Floodbase, KatRisk, and ICEYE, plus this could be a solution that utilises ILS market capacity in future.

Yesterday it was a pleasure to welcome representatives of more than 90 organisations to our Artemis ILS Asia 2024 conference in Singapore and while the engagement of attendees from the region was as strong as ever, there has been a notable and positive shift in interest to the investor-side of the equation.

Singapore sees continued interest from sponsors, investors and specialist insurance-linked securities (ILS) managers, with a few of the latter considering establishing offices there, Cheng Khai Lim, Executive Director, Financial Markets Development Department, Monetary Authority of Singapore (MAS) said in a welcome speech at our ILS Asia 2024 conference yesterday.

A new Bermuda-based asset manager has emerged named Members Capital Management Limited with well-known insurance-linked securities (ILS) industry executive Ben Fox in the Chief Investment Officer role and a mission to (re)diversify sources of reinsurance capital using digital and tokenized assets.

With catastrophe bond market yields remaining elevated at above the 13% mark, investment manager Twelve Capital has noted that this level of return represents a “natural buffer” against hurricane losses.