Insurance-linked investments

In the latest court filings under the Vesttoo chapter 11 bankruptcy case, it’s become clear that a difference of opinion has emerged between creditors to the estate, with the Official Committee of Unsecured Creditors taking a different tack to the joint provisional liquidators to Aon’s White Rock Insurance (SAC) Ltd.

Reinsurance broker Gallagher Re has attracted a key hire of an executive with significant insurance-linked securities (ILS) experience, as Brad Livingston has left parametric firm Arbol to join the broker as its new Head of Collateralized Re.

Hudson Structured Capital Management (HSCM), the reinsurance, insurtech, insurance-linked securities (ILS) and transportation focused investment manager, has participated in a new funding round for homeowners insurtech Kin, as the company secured a $33 million extension to its Series D.

Analysts from investment bank Berenberg have said that investors may, at this time, be more open to allocating capital to reinsurance via insurance-linked securities (ILS) vehicles than through any new “Class of” startup companies.

While the catastrophe bond space is expected to continue growing, due to its track record and performance, Stephan Ruoff, Global Head of Schroders Capital ILS is also bullish on private ILS transactions, although acknowledges that investors will want to see a period of improved returns from this segment of the ILS market.

Tanguy Touffut, the CEO & Co-founder of parametric insurance and risk transfer specialist Descartes Underwriting, expects strong growth for the parametric marketplace, while the role of insurance-linked securities (ILS) investors in backing parametric risk transfer structures is expected to increase as well.

MS Transverse Insurance Group, a fronting carrier subsidiary of MS&AD Insurance Group Holdings, has added insurance-linked securities (ILS) expertise to its team, in the hiring of former Elementum Advisors employee Chris Cebula as Senior Vice President, Reinsurance.

Twelve Capital, the Zurich-headquartered insurance-linked securities (ILS), catastrophe bond and reinsurance investment manager, remains positive on the potential for the private ILS market to continue to recover from its recent historical challenges and intends to launch a new strategy to target the end of year renewal period, Marcel Grandi, Head of ILS Sourcing told Artemis.

Speaking today in Monte Carlo, senior executives from Swiss Re’s reinsurance business unit explained that the firm’s Alternative Capital Partners (ACP) unit is an area where “consistency and continuity” are key, while the firm sees “zero conflicts” between its ACP investors and its equity holders.

Philipp Rüede, Head of Swiss Re’s Alternative Capital Partners (ACP) unit told us in an interview that the outlook for use of alternative capital and for insurance-linked securities (ILS) as an asset class has “significantly improved”, with expected returns now doubled or tripled in some ILS strategies.