Insurance-linked investments

Icosa Investments catastrophe bond fund strategy that was launched at the start of this year has now reached a new milestone in surpassing US $300 million in assets, as success in raising inflows continued in recent months.

Specialist investment manager Twelve Capital has highlighted another stunning year for the catastrophe bond market, pointing out that the Swiss Re cat bond Index has returned 40% in just two years, but also sharing a note of caution that further spread tightening is possible with investor demand elevated for the asset class.

AIG has announced the launch of Syndicate 2478 at Lloyd’s, which is set to be a multi-year participant on its outwards reinsurance program and is supported by third-party capital from funds under Blackstone management, channelled through the London Bridge 2 PCC structure.

The market should expect Swiss Re to continue building out its capabilities across insurance-linked securities (ILS) and alternative reinsurance capital, as the company is benefiting from their growth, while investors in Alternative Capital Partners (ACP) structures have been enjoying “very strong performance”, CFO John Dacey said today.

Munich Re’s collateralised reinsurance sidecar structures grew to $650 million in 2024, as the company elevated its use of retrocession, aligned with its growth in natural catastrophe exposure from its underwriting.

Global reinsurance company Swiss Re said today that its third-party capital markets focused Alternative Capital Partners (ACP) division is supporting its long-term growth trajectory in natural catastrophe risks.

Qube Research & Technologies (QRT), a global quantitative and systematic investment manager that specialises in a technology and data-driven approach to allocation across liquid asset classes, has hired former Schroders executive Daniel Ineichen to lead an insurance-linked securities (ILS) strategy.

We’ve now published the full video of our recent Capital markets structures for originators (sidecars for MGA’s) live webinar that was held on November 21st 2024 and featured insurance-linked security (ILS) and reinsurance industry experts discussing the developing trend of risk originators using ILS structures, to source capital markets risk and partnership capacity.

France headquartered global reinsurance firm SCOR said today that it has added three new risk partners in 2024 so far, as it continues to expand its third-party capital relationships and activities under Risk Partnerships, while seeing its 2026 target for fee income growth from this business as on track.

Investor optimism remains strong for catastrophe bonds and reinsurance sidecars, but when it comes to collateralized reinsurance that optimism still lags, but institutional investors are positively working to address issues that have made allocating fresh capital more of a challenge in private ILS and collateralized reinsurance, according to Artex.