Insurance-linked investments

During the full-year 2023, the catastrophe bond and insurance-linked securities (ILS) team at private markets focused investment manager Schroders Capital allocated over US $817 million to transactions that specifically help in reducing the insurance protection gap.

On a relative basis, catastrophe bonds have rarely presented a more compelling investment opportunity than today, as despite spreads having tightened somewhat the cat bond asset class diversification offering can be at its strongest when other assets like equities are overvalued, fund manager Icosa Investments has said.

Here’s a final reminder to register for our Artemis Live webinar, being held this week on November 21st 2024, in which industry expert speakers will explore the use of alternative capital sources by originators of insurance risk, such as managing general agents (MGA’s).

International insurer and reinsurer MS Amlin has now launched the capital raise for the 2025 edition of its Phoenix reinsurance sidecar, and with the vehicle’s performance consistently beating expectations, investor interest is high, according to William Ho, CEO of MS Amlin Asia Pacific.

With barriers to adoption of modern analytical methodologies and technological innovations lower than ever, Ben Brookes, Managing Director – Advisory Services, Moody’s Insurance Solutions, has observed that the insurance-linked securities (ILS) industry is at a “pivotal moment”, poised to become stronger, more adaptable, and primed for growth.

As the Markel CATCo retrocessional reinsurance investment portfolio story begins to draw towards its natural run-off conclusion, the Board of the London listed fund entity is seeking shareholder approval for a winding up of that specific strategy.

Year-to-date, only modest amounts of catastrophe losses would be shared with the investors backing reinsurance firm Swiss Re’s Alternative Capital Partners (ACP) division, as the third-party capital unit is more geared to larger tail-risk events, the firm’s Group CFO John Dacey explained today.

Members Capital Management Limited, a Bermuda-based asset manager focused on bringing new sources of reinsurance capital to the insurance-linked securities (ILS) sector using digital and tokenized assets, has appointed UK public and private sector leader Lord Chris Holmes MBE to its strategic advisory board.

DaVinci, the sidecar-like third-party capitalised reinsurance joint-venture vehicle operated by RenaissanceRe has received an upgrade from Moody’s, with the ratings agency citing DaVinci’s increased scale and long-term profitability as key drivers.

Ruby Re, Reinsurance Group of America’s (RGA) third-party life reinsurance sidecar, has now raised a total of $480 million in capital following the close of its second funding round, which is near the upper limit of the $400 million to $500 million target range for the Missouri-domiciled vehicle.