Insurance-linked investments

Capacity to support aggregate retrocessional reinsurance renewals at 1/1 is “extremely scarce” according to analysts at KBW, who after a second day of meetings with Bermudian companies concluded that significant rate increases are going to be required for this segment of the market.

As the proposal of a process to buyout investors in the Markel CATCo Investment Management retrocessional reinsurance investment funds has been drawn out by legal appearances and is now waiting for a court decision to proceed, the investment manager has extended the expiry date of the support undertakings it received from investors.

Farmers Insurance Group has now secured the slightly upsized $160 million of collateralized reinsurance protection from its first catastrophe bond, with the Topanga Re Ltd. (Series 2021-1) issuance set to provide the Zurich-linked insurer with multi-year aggregate cover across peak perils.

After the publication of the latest Intergovernmental Panel on Climate Change (IPCC) report earlier this year in August, the Credit Suisse Insurance Linked Strategies team has analysed its findings on climate trends related to severe weather catastrophes and tried to quantify their impacts on the global insurance, reinsurance and insurance-linked securities (ILS).

Optimism over reinsurance renewal rate increases is said to be rising, as the market deals with a significantly delayed renewal timeline, for which a lack of aggregate retrocession capacity and trapped insurance-linked securities (ILS) capital are two of the drivers.

Progress in the buyout of investors in the Markel CATCo Investment Management retrocessional reinsurance investment funds is unlikely to be made until next year now, as the investment manager said a court decision is unlikely to come until January 22nd 2022.

Laying bare the size of the opportunity in environmental, social and governance (ESG) appropriate investing, tracker of data on the alternative asset management space Preqin has estimated that as much as $3.1 trillion of private capital assets under management could have an ESG focus.

The Canada Pension Plan Investment Board (CPPIB), one of the larger pension investors with a strong appetite for insurance and reinsurance market-linked returns, is reportedly looking to sell two of its larger equity stakes in the industry, by offloading specialty player Ascot Group and life and annuity reinsurance firm Wilton Re.

Twelve Capital Management, the Zurich-headquartered catastrophe bond, insurance-linked securities (ILS) and reinsurance linked investment fund manager, is expanding its strategies to include insurtech investments with the help of a new collaboration with specialist insurtech investor Eos Venture Partners.

Voussoir Re Ltd., the Bermuda-based collateralized reinsurance sidecar style special purpose insurance (SPI) vehicle of Arch Capital, has issued new Series 2021-9 shares, showing the sponsor continuing to use this structure to partner with capital market investors.