Insurance linked securities news, ILS news

Given the strong recovery in many catastrophe bonds and private ILS that were exposed to hurricane Ian, as well as the now elevated returns in the market on the back of higher reinsurance pricing and risk-free collateral returns, some insurance-linked securities (ILS) strategies could recover to levels seen before Ian by the end of March.

Activity in the catastrophe bond market during the first quarter of 2023 suggests that sponsors have built on the orderly year-end renewal, with initial indications pointing to a shift in momentum across the market, according to Aon Securities, the insurance-linked securities (ILS), catastrophe bond and capital markets arm of the insurance and reinsurance broker.

2023 has the potential to be a transformational year for the insurance-linked securities (ILS) marketplace as it’s increasingly recognised as a viable and important component of a reinsurance strategy by buyers of protection, according to industry expert speakers at ILS NYC 2023.

Having launched a multi-year sidecar structure called Flywheel Re earlier this year, Accelerant now benefits from greater flexibility and the investor backing is supporting its growth, CFO Jay Green explained at the SIFMA ILS event in Miami last week.

Catastrophe bond funds in the UCITS format have reached another key milestone, with the combined assets under management (AuM) of the group of main UCITS cat bond funds surpassing $9 billion for the first time ever.

The global insurance, reinsurance and insurance-linked securities (ILS) industry has a clear seat at the table on discussions and actions related to climate change, according to Arthur Wightman at PwC Bermuda.

Global reinsurance company Ariel Re continues to seek new and efficient ways to enhance its capital-base, with the latest example a $270 million raise to support 2023 expansion, $170 million of which is channelled via Lloyd’s London Bridge 2 PCC insurance-linked securities (ILS) structure.

The catastrophe bond market is seen as entering a period of particularly strong growth, with a potential doubling of the outstanding cat bond market to $70 billion within the next five years, according to Fermat Capital Management’s John Seo.

US primary insurance carrier Allstate is targeting at least $225 million of catastrophe reinsurance from its first catastrophe bond issuance of this year, with the Sanders Re III Ltd. (Series 2023-1) deal set to provide multi-layer coverage across a proposed three tranches of notes.

American Integrity Insurance Company of Florida, Inc. is back in the catastrophe bond market seeking $100 million or more in collateralized Florida named storm reinsurance with an Integrity Re Ltd. (Series 2023-1) issuance.