Insurance linked securities news, ILS news

Here are the ten most popular news articles, week ending March 5th 2023, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

The US managing general agent (MGA) market is expanding rapidly and insurance origination and distribution specialist Amwins has highlighted growing interest in alternative capital sources in the space, with an increasing role for insurance-linked securities (ILS).

Speaking with Artemis, Hannover Re senior executives Silke Sehm and Henning Ludolphs explained that tapping into the insurance-linked securities (ILS) market for cyber retrocessional reinsurance capacity is a priority and with a quota share already arranged, the next step is sponsoring the reinsurer’s first cyber catastrophe bond, details of the form were not revealed.

The insurance-linked securities (ILS) market has spent considerable time seeking to better understand the cyber opportunity and this proof work can help to create a sustainable ecosystem around investing in cyber insurance risks, speakers said yesterday at the SIFMA ILS event in Miami.

Insurance-linked securities (ILS) funds as a group have delivered a strong start to 2023, with an average ILS fund return of 1.18% for January, the second strongest performance for the month in the record of the Eurekahedge ILS Advisers Index.

At the 2023 SIFMA ILS conference in Miami yesterday, speakers explained that the insurance-linked securities (ILS) market has undergone a giant reset and that the now-higher rate environment is anticipated to persist, leading others to cite their optimism for the asset class going forwards.

Having successfully placed a new $100 million Sanders Re III Ltd. (Series 2022-3) catastrophe bond in December 2022, US primary insurance carrier Allstate has lifted the top of its Nationwide Excess Catastrophe Reinsurance Program tower to $7 billion.

Andre Perez, well-known as the founder and former CEO of leading insurance-linked securities (ILS) facilitation, reinsurance management, fund administration, and risk transformation specialist Horseshoe, has returned backing a new venture, H2 Group, a Bermuda-based technology firm with a first product that promises to bring more transparency to ILS investors.

There is lots of interest in the insurance-linked securities (ILS) market, but any incursion of capital is going to be gradual and cautious as investors continue to be more hesitant to enter the market, said AM Best’s Carlos Wong-Fupuy.

Security First Insurance Company, a specialist Florida domestic homeowners insurer, is back in the catastrophe bond market with a First Coast Re IV Ltd. (Series 2023-1) issuance, that targets $100 million or more in named storm and severe thunderstorm reinsurance protection for the company.