Insurance-linked investments

The catastrophe bond market could see as much as $11.5 billion of new issuance in 2023, but participants are likely to maintain a focus on balancing issuance to available capital, Jean-Louis Monnier, Head Retro & ILS Structuring, Swiss Re Capital Markets told Artemis.

Insurance-linked securities (ILS) and more broadly the reinsurance industry, must demonstrate to investors that the margin in the product is sustainable, to deliver greater confidence to capital and encourage more significant inflows to the space, Aditya Dutt, President of Aeolus Capital Management has said.

HSCM Ventures, the insurance technology venture investing arm of ILS and reinsurance specialist investment manager Hudson Structured Capital Management, has participated in a $25 million funding round for life insurtech Dayforward.

VP Bank AG, a Liechtenstein-based private bank and asset manager, has said that the insurance-linked securities (ILS) investment opportunity has “never been so interesting”, with the highest yields in over a decade now possible, and further revaluation gains in hurricane Ian exposed catastrophe bonds expected.

Increasingly, non ILS specialist capital is entering the catastrophe bond market, as many investors that have allocated before return, and this is helping to stabilize the market, according to Cory Anger of GC Securities.

Insurance and reinsurance broker Aon has been working with insurtech Vesttoo on intellectual property insurance-related financing solutions, with the latter helping to bring capital markets capacity to the brokers proposition.

Rating agency AM Best has cited Vantage Risk’s insurance-linked securities (ILS) strategy, of moving catastrophe risk off its balance-sheet with the backing of third-party investor capital, as positive and able to drive income and reduce volatility.

More capital will flow back into the global reinsurance marketplace once it is visible that new pricing levels can enable more profitable underwriting, Swiss Re’s CEO Christian Mumenthaler explained during an interview yesterday.

Today we announce some more expert speakers who will be joining us at our insurance-linked securities (ILS) conference, Artemis ILS NYC 2023 on February 10th in New York City, as well as the outline agenda for the day. Please register soon to guarantee your place at the conference as tickets are selling fast.

The current hard market for insurance-linked securities (ILS) and catastrophe bonds is equally as hard as the post-Katrina year of 2006, according to new analysis from consultancy Lane Financial.