Insurance-linked investments

The total-return of the outstanding catastrophe bond market in 2023 has now surpassed 16%, beating the previous record and staying on-track to deliver an investment return that might surpass 20% by year-end, which could, in future, be a challenging record to beat.

Registration is now open for our next insurance-linked securities (ILS) conference. ILS NYC 2024 will be held in New York City on February 9th 2024, with around 400 attendees from the ILS community expected to come together for a day of thought-leadership, discussion and valuable networking.

Obra Capital, an alternative investment manager with strategies focused on insurance and reinsurance, has entered into a new strategic partnership with another investor with insurance-linked experience, as Aquarian Holdings has bought a minority equity ownership stake in the firm.

Schroder Investment Solutions, a division of the global asset management group Schroders that provides portfolio solutions and management via investment advisers to retail and wealth clients, has launched the Schroder Alternatives Fund, a strategy that looks set to draw on the managers insurance-linked securities (ILS) expertise.

Reinsurance rates and pricing are forecast to “remain harder for longer” in the current elevated interest rate environment, with a reduced supply of alternative capital expected to continue to be a driver, as institutional investors such as pension funds continue managing their allocation limits, analysts at investment bank Berenberg have said.

It’s become apparent that PGGM, the Dutch pension fund investment manager that allocates the largest amount to the insurance-linked securities (ILS) market on behalf of end-client the Dutch pension PFZW, added a new ILS manager to its allocation list in 2022, with an investment into a fund managed by Integral ILS.

Although there are investors waiting on the side-lines of the insurance-linked securities (ILS) market with an interest in responsible transactions, there’s still a need for a minimum return which outweighs the importance of liquidity and diversification, according to industry experts.

This video features another panel discussion from our Artemis ILS Asia 2023 conference, held in Singapore on July 13th 2023, a session focused on public sector and sovereign risk transfer schemes and the use of catastrophe bonds and capital markets capacity.

The Committee of Unsecured Creditors in the Chapter 11 bankruptcy case of insurtech Vesttoo has now filed a request with the court to allow them to conduct legal discovery on insurance and reinsurance broking group Aon and certain related entities that have been exposed to the letter of credit fraud issues.

Bermuda continues to be the world-leading insurance-linked securities (ILS) domicile, with the vast majority of the catastrophe bond market and a significant proportion of the rest of the ILS market, domiciled or serviced on the island, while its industry continues to drive forwards reinsurance and capital markets Convergence.