Insurance-linked investments

Acting as a front or transformer for insurance-linked securities (ILS) funds and investors is an increasingly important part of global reinsurance firm Hannover Re’s business and there is evidence these activities grew further for the company in the first-half of 2023.

We’re told that the sum total of assets and so value that could be distributed in Vesttoo’s pending liquidation under the bankruptcy proceedings, is estimated to be below $25 million, which suggests creditors that lost significant value due to the reinsurance letter of credit (LOC) fraud are likely to be left unsatisfied, so may look […]

The financial strength ratings of fronting specialist Clear Blue Insurance Insurance Group have been removed from negative watch by AM Best, but the rating agency notes that some uncertainty remains, due to the impacts and effects of the letter of credit (LOC) fraud instigated by employees of insurtech Vesttoo.

Plenum Investments AG, the Zurich based specialist insurance-linked securities (ILS) and catastrophe bond investment manager, has grown the assets under management of its mixed catastrophe bond and subordinated insurance debt ILS investment fund to over US $400 million.

Insurtech Nayms has facilitated a first secondary trade of participation tokens on its platform, as two parties traded a participation in what was the first cryptocurrency denominated industry loss warranty (ILW) transaction.

For global insurance and reinsurance player Everest Group, using its Mt. Logan Re Ltd. third-party capitalised sidecar-like structure is seen as preferable to sponsoring catastrophe bonds or hedging with ILW’s, according to CFO Mark Kociancic.

Enact Mortgage Insurance has successfully closed on its new mortage insurance-linked securities (ILS) issuance, securing $248 million of collateralized mortgage reinsurance protection from the capital markets with the issuance of Triangle Re 2023-1 Ltd. mortgage insurance-linked notes.

Catastrophe bond funds in the UCITS format have now delivered around 14% in returns year-to-date on average, while their assets under management as a group had recovered to more than $10 billion by the end of October 2023.

Insurance-linked securities (ILS) are seen as one of the top choices for investors seeking diversification and to add performance to their portfolios, in the private assets category of investments, according to survey data from Schroders.

Having analysed data from the secondary market for insurance-linked securities (ILS), consultancy Lane Financial LLC concludes that the market for catastrophe bonds and ILS will remain in “hard market” territory in 2024, but perhaps only “half as hard” as might have been forecast at the start of this year.