Insurance-linked investments

Speaking at ILS Bermuda’s Convergence 2024 event this week, David King, Founder and Senior Managing Director of Culpeper Capital Partners, stated that insurance-linked-securities (ILS) has been a major change that has helped drive a deconstruction of the traditional insurance and reinsurance balance-sheet.

After hurricane Milton skirted the northern Yucatan peninsula of Mexico without making a landfall it is now presumed that the $125 million Class C notes of the IBRD CAR Mexico 2024 catastrophe bond are safe and will not suffer a loss.

Hurricane Milton is now a Category 4 storm with sustained winds of 155 mph at the latest NHC update. With the central pressure now estimated at 933 mb and a track that will see Milton getting very close to the northern Yucatan peninsula, it has brought the Class C notes of the IBRD CAR Mexico […]

As hurricane Milton heads towards Florida, the developing storm situation poses the biggest potential threat to the insurance-linked securities (ILS) market since hurricane Ian in 2022, according to Florian Steiger, the CEO of catastrophe bond investment manager Icosa Investments AG.

Investment manager Amundi US has continued to attract capital to its most recently launched dedicated insurance-linked securities (ILS) fund strategy, as the Pioneer CAT Bond Fund has now reached $426 million in assets, now roughly tripling in size over the course of 2024 so far.

Australian sovereign wealth investment fund, the Future Fund, saw its allocation to insurance-linked securities (ILS) fall again at the mid-point of this year, with the investments it has with specialist ILS fund managers declining to the equivalent of US $1.49 billion.

Starwind Specialty Insurance Services, LLC, a program management subsidiary of broking group TIH, has secured $270 million of collateralized reinsurance capacity for certain casualty risk focused programs, through the launch of Fractal Re Ltd., a multi-year collateralized quota share sidecar structure.

Here’s a reminder to register for our upcoming live insurance-linked securities (ILS) focused webinar on October 31st 2024, in which our industry expert speakers will explore the state of the catastrophe bond and broader ILS market, as well as the outlook for 2025.

In the month of September 2024, the overall yield of the catastrophe bond market declined further as the effects of hurricane seasonality accelerated, while also adding to the decline is a gradual reduction in the cat bond market collateral yield, as lower interest rates begin to have an effect.

A new specialist parametric risk transfer underwriter has been launched, with Trigger Parametric backed by insurtech veteran Graeme Dean and launched with the help of a senior underwriting team formed of employees previously at fintech Stable and the parametric division of Africa Specialty Risks (ASR).