Insurance-linked investments

The catastrophe bond market delivered the second-highest total-return in its history in 2024, reaching 17.29% for the full-year, according to data from the Swiss Re Cat Bond Performance Indices.

Arch Re, the reinsurance underwriting arm of global re/insurer Arch Capital Group, has hired Nicole Chase who was most recently at Everest’s third-party capital and ILS platform Mt. Logan, as Deputy General Counsel for Arch Re Capital Partners & Reinsurance.

Galapagos Capital has now received the expected official authorisation from Brazil’s insurance regulator SUSEP to establish its own Sociedades Seguradoras de Propósito Específico (SSPE), a special purpose reinsurance vehicle that can issue Letra de Risco de Seguro (Insurance Risk Letters), which are insurance-linked securities (ILS).

Stone Ridge Asset Management, the New York based alternative risk premia focused investment manager, had another strong year for its reinsurance investment strategies and ventures in 2024, which CEO Ross Stevens describes in his latest investor letter while also explaining some of what makes the firm so interesting.

Dedicated reinsurance capital grew by 6.9% over the course of 2024, but alternative capital that largely represents the capacity deployed by insurance-linked securities (ILS) fund managers and through other ILS structures expanded slightly faster by 7% to reach $107 billion this year, according to Guy Carpenter and AM Best.

Munich Re has been back in the capital markets to secure quota share based retrocession and to start the 2025 sidecar arrangement for the reinsurer, its Eden Re II Ltd. collateralized reinsurance vehicle has issued $64.5 million of Series 2025-1 Class A notes, which is the largest Class A tranche from the structure since 2019, […]

Having seen the volume of premiums ceded to its Lifson Re collateralized reinsurance sidecar shrink during the first-half of this year, US headquartered insurance holding company W. R. Berkley Corporation caught up a little through the third-quarter, suggesting a change in timing may have driven part of the H1 decline seen.

Galapagos Capital, a global investment company headquartered in Brazil that offers a range of investment management, banking and financial services, has received pre-authorisation from the insurance regulator SUSEP to establish an issuer of Letra de Risco de Seguro (Insurance Risk Letters), which are Brazil’s own type of insurance-linked securities (ILS).

The insurance-linked securities (ILS) market should become more streamlined and professionalised if mergers and acquisitions (M&A) consolidate players, which Stonybrook Capital believes can help in attracting more institutional capital to the sector.

Catastrophe bond market records are falling in 2024 and set to be beaten on most fronts, with overall issuance recorded in the Artemis Deal Directory reaching a new high of almost $17.7 billion for the year, including a record $17.24 billion of Rule 144A cat bonds, driving a new end-of-year outstanding market record and cat […]