Insurance-linked investments

Catastrophe risk modelling specialist Karen Clark & Company (KCC), has launched a new version of its US Severe Convective Storm (SCS) model, with the firm indicating that this update is expected to provide the accuracy and stability required by reinsurers and ILS investors for capital allocation concerning the severe thunderstorm peril.

A recent commentary by Schroders Capital’s Vice Chairman of Insurance-Linked Securities (ILS) Dirk Lohmann highlights how the firm takes “an own view of risk” to enhance its ability to effectively model index-based catastrophe bonds, which ultimately helps the organisation to build resilient portfolios.

Ministers from the G20, or Group of Twenty forum for global economic cooperation, recently came together in South Africa for annual meetings and the Disaster Risk Reduction Working Group advocated for the enhancement of risk transfer solutions, particularly including use of parametric insurance, risk pools, and catastrophe bonds.

For KKR, with committed capital managed in life and annuity reinsurance sidecar structures under Global Atlantic rising rapidly for the investment giant in recent years, these third-party capitalised reinsurance strategies are an increasingly important component of the firm’s results.

With the pipeline of new 144A catastrophe bonds growing as new deals get launched, the market is now officially on track for the first $20 billion plus calendar year of issuance in 2025.

Fermat Capital Management is set to leverage its underwriting and analytics expertise to launch new entity Fermat Re, as it demonstrates its desire to take greater ownership for the origination, structuring and management of reinsurance investment opportunities, while creating turn-key portfolios for clients.

SCOR Investment Partners surpassed the $5 billion milestone in terms of catastrophe bond and insurance-linked securities assets under management and senior executives Sidney Rostan and Alexandre Jaegle told us they view the market outlook as positive and anticipate momentum continuing, for the sector and their own ILS investment platform.

The Monetary Authority of Singapore (MAS) has now confirmed details of the refresh and extension of its insurance-linked securities grant scheme, with grants now available to cover some of the upfront costs of issuance for catastrophe bonds covering risks outside of the Asia Pacific region, as well as for other ILS arrangements.

Catastrophe bond investment funds in the UCITS format have continued to deliver strong returns for their investors through October, with the average 2025 year-to-date return for these cat bond funds running at 8.88% by the end of that month, according to the latest data from the Plenum CAT Bond UCITS Fund Indices.

There are now only three months until Artemis returns to New York on February 6th 2026 for the tenth insurance-linked securities conference in the ILS NYC series. Around one-third of tickets are already sold for ILS NYC 2026, but the Early Bird rate is still available and we wanted to give an idea of who […]