Insurance-linked investments

Leading United States life, retirement and annuities insurance and reinsurance company Global Atlantic explained to us that it sees its newly launched life and annuity co-investment vehicle named Ivy as akin to the sidecars that are a feature of the insurance-linked securities (ILS) market.

The two Guernsey domiciled rated reinsurance vehicles managed by and backed by capital from the Credit Suisse Insurance Linked Strategies Ltd. team have had their ratings affirmed and their underwriting strategies tweaked to reduce the volatility in their results going forwards.

The mid-year reinsurance renewal season is set for further firming of premium rates as market conditions help to sustain and perhaps accelerate recent trends, something Leadenhall Capital Partners CEO Luca Albertini says is evident in early Firm Order Terms.

The in run-off CATCo Reinsurance Opportunities Fund Ltd., the exchange listed retrocession focused investment fund strategy managed by Markel CATCo Investment Management, is expecting to receive an $18.8 million return of capital from a range of side pockets in May, with the proceeds set to be used to redeem more shares.

Catastrophe bond returns may continue to improve for investors, as new issuance spreads are expected to continue widening as a result of the ongoing volatility in financial markets, Twelve Capital believes.

Despite the impacts of the coronavirus pandemic through recent weeks, Amundi Pioneer Investment Management’s ILS team have been seeing continued demand for the insurance-linked securities (ILS) asset class, in particular from investors that are already experienced ILS allocators.

Arch Capital Group, the Bermuda headquartered insurance and reinsurance specialist underwriter, has released a forecast of its potential first-quarter losses due to the Covid-19 coronavirus pandemic, saying it expects up to $145 million of losses across its property & casualty insurance, reinsurance and mortgage insurance lines of business.

U.S. mortgage insurers are likely to face challenges in issuing new mortgage insurance-linked securities (ILS) at this time and their reinsurance costs are expected to rise on the back of the Covid-19 coronavirus pandemic, according to A.M. Best.

Global Parametrics, the parametric and index-based disaster risk transfer company, is putting capacity from the Natural Disaster Fund (NDF) that it manages behind a new weather insurance pilot for coffee farmers in Costa Rica that is powered by Arbol’s technology and smart contract driven marketplace for weather risk transfer.

Bermuda’s latest addition to its insurance-linked securities (ILS) offering is the much discussed Collateralised Insurer classification of company, which Brad Adderley, Partner at law firm Appleby Bermuda, recently explained will enable ILS funds to target a broader range of cedents.