Insurance-linked investments

Artex Risk Solutions, the captive, alternative risk transfer, ILS facilitation and capital solutions subsidiary of Arthur J. Gallagher & Co., has named long-standing executive Paul Eaton as its new Artex International Chief Executive Officer (CEO).

SIGLO Capital Advisors AG, a Swiss based alternative asset advisory specialist with an insurance-linked securities (ILS) practice, has hired well-known catastrophe bond and ILS product specialist Siti Dawson as a Senior Analyst.

The acquisition of hybrid P&C program, fronting and risk transformation company, Transverse Insurance Group, by MS&AD Holdings, through its Mitsui Sumitomo Insurance unit, has been completed, with the pair now targeting growth through this relationship.

Stone Ridge Asset Management’s mutual insurance-linked securities (ILS) fund that is structured in an interval style has delivered a positive annual return in the period to October 31st 2022, despite its broad exposure to hurricane Ian.

Insurance-linked securities (ILS) and catastrophe bond funds gained 0.87% for the month of November 2022, with continued recovery among some ILS funds after hurricane Ian, especially for those that had fallen most significantly the month that storm occurred.

There are expected to be an increasing number of partnerships on cyber risk underwriting with insurance-linked securities (ILS) fund managers in 2023, according to cyber modelling specialist CyberCube.

The Plenum CAT Bond UCITS Fund Indices, an index that provides a reasonable proxy for cat bond fund performance across the market, saw mixed fortunes again between the lower and higher risk strategies in the last week of record, while the overall year-to-date performance has continued to improve.

Global reinsurance giant Munich Re is revisiting its relationship with capital market investors in its collateralized reinsurance sidecar vehicle for 2023, with a first tranche of Eden Re II notes issued, albeit at smaller size than previous years.

Due to the range of influences and factors affecting catastrophe bonds and insurance-linked securities (ILS) this year, Nelson Seo, Co-Founder and Managing Director of Fermat Capital Management, believes this could be the best ILS investment environment ever.

The outlook for the end of year reinsurance renewals may not be saved by a cavalry of ILS capital, coming in at the last minute to fill holes in programs this year, but our sources suggest pockets of successful capital raising from investors are being seen, allowing some to capitalise on the 1/1 rate opportunity.