Insurance-linked investments

The fifth session at our Artemis London 2022 conference featured a keynote speech from the CFO and COO of Lloyd’s, Burkhard Keese, who explained Lloyd’s evolving approach to insurance-linked securities (ILS) and appetite to expand its use of ILS structures, to supply third-party capital to the market.

Insurance giant American International Group (AIG) reported that assets under management at its AlphaCat Managers insurance-linked securities (ILS) and collateralized reinsurance investment manager, fell slightly to $3.3 billion at the end of the third-quarter, while investment losses from hurricane Ian are also evident.

Hiscox Group reported its results this morning, saying that net flows to its insurance-linked securities (ILS) funds were broadly stable for the third-quarter, but noting that after hurricane Ian investment sentiment has been impacted to a degree.

RenaissanceRe, the Bermuda headquartered reinsurance and third-party capital management specialist, passed on some $372.4 million of losses to investors in some of its managed reinsurance structures during the third-quarter, with hurricane Ian the main driver.

Nephila Capital, the flagship insurance-linked securities (ILS) fund management operation owned by Markel Corporation, has reported a $700 million decline in net assets, as hurricane Ian’s impacts and losses drove the total down to $7.8 billion.

K2 Advisors, the hedge fund focused investment management unit of Franklin Templeton, has said that in the wake of hurricane Ian it anticipates a “material pricing dislocation” across all segments of insurance-linked securities (ILS), which should lead to an “opportunistic entry point” to the sector for investors.

Catastrophe bond funds, as measured by the Plenum CAT Bond UCITS Fund Indices, appear to have hit the bottom of their hurricane Ian related decline, with a slight gain in the last week reported and we believe more gains to come according to other market signals.

Today we are announcing our first wave of expert speakers that will be joining us at our next insurance-linked securities (ILS) conference, Artemis ILS NYC 2023 on February 10th in New York City. Please register soon to guarantee your place at the conference at the best possible price.

Hudson Structured Capital Management (HSCM), the reinsurance, insurtech, insurance-linked securities (ILS) and transportation focused investment manager, has financed insurtech homeowners specialist Kin Insurance again, this time as a participant in a $145 million debt capital raise.

The Board of the Plymouth County Retirement Association, a retirement manager that provides pensions and benefits to over 11,500 participants from 24 municipalities, 5 regional schools, 17 housing authorities, and 6 special districts, is seeking an insurance-linked securities (ILS) investment manager for an allocation.