Insurance-linked investments

Current insurance and reinsurance market dynamics suggest that it could be an opportune time for startups to enter the property/casualty market, according to Brad Adderley, Partner at Appleby, Bermuda.

Arch Capital Group Ltd., the Bermuda headquartered insurance and reinsurance specialist, has said that it expects the amortisation of its Bellemeade Re mortgage insurance-linked securities (ILS) transactions may be halted by an expected rise in delinquencies due to the coronavirus pandemic.

Elementum Advisors, LLC, the insurance-linked securities (ILS) fund management and collateralised reinsurance underwriter that is 30% owned by White Mountains, earned $37 million in fee revenues in 2019, which was a roughly 9% increase in revenues on the previous year.

Hudson Structured Capital Management Ltd. (doing its insurance investment business as HSCM Bermuda), the insurance-linked securities (ILS), reinsurance- and transportation- focused investment manager, was a lead backer of insurance giant AIG’s recent launch of a new Lloyd’s syndicate.

As we reported recently, Markel Corporation has invested $90 million of its own capital into an investment strategy managed by its retrocessional reinsurance focused investment manager Markel CATCo, to boost capital available to fund investor redemptions.

American International Group, Inc. (AIG) officially launched its latest syndicate at Lloyd’s yesterday, with Lloyd’s Syndicate 2019 set to be the largest ever launch in that market with a target for around $1 billion of gross premiums to be written.

AlphaCat Managers, the insurance-linked securities and collateralised reinsurance investment manager entity of insurance giant American International Group’s (AIG) delivered its parent $10 million of income for the first-quarter of 2020.

Plenum Investments AG, the Zurich based specialist insurance-linked securities (ILS) and catastrophe bond investment manager, has announced two key hires with Daniel Grieger who was formerly at Twelve Capital and Rötger Franz formerly of Société Générale joining the firm.

TigerRisk Partners LLC, the global risk, capital and reinsurance brokerage and advisory, has announced the hiring of experienced London reinsurance and insurance-linked securities (ILS) market executive Lawrence Po-Ba.

Insurance-linked securities (ILS) have once again demonstrated their lack of correlation to global financial markets in proving themselves “largely immune” to Covid-19 related volatility, Dirk Lohmann has said.