Insurance linked securities news, ILS news

Insurance-linked securities (ILS) portfolios with predominantly catastrophe bond holdings have on average outperformed many mid- and higher-risk ILS fund strategies that contain private ILS transactions over recent years, according to analysis from Frontier Advisors.

Record catastrophe bond and related insurance-linked securities (ILS) market issuance in 2021 has helped the Bermuda Stock Exchange (BSX) to increase the value its listings of cat bond and ILS notes by 26% during the year.

Reinsurance as a sector and the major global reinsurers have suffered due to elevated catastrophe losses in recent years, but analysts at investment bank Berenberg believe that Hannover Re’s comprehensive retrocession program is giving investors confidence and helped to buoy its share price in 2021.

Tenax Capital, the London based hedge fund manager that was founded by CEO Massimo Figna and now counts FOSUN as its major shareholder, believes that catastrophe bond pricing and terms & conditions will remain attractive through 2022, while more inflows from generalist fixed income investors are possible.

Global reinsurance firm Swiss Re developed its 1863 insurance-linked securities (ILS) fund platform to be “investor friendly” and has attempted to address some of the “structural inefficiencies” often seen in ILS products, according to Martin Bisping, CEO of the reinsurers’ Swiss Re Insurance-Linked Investment Management Ltd (SRILIM) unit.

Strategic Risk Solutions, Inc., an independent provider of insurance, reinsurance and captive management and consulting services, has announced the promotion of Peter Child to the role of CEO of SRS Europe.

A UK parliamentary group, the House of Lords Industry and Regulators Committee, has launched an inquiry into commercial insurance and reinsurance regulation, to assess its effects on the competitiveness of the London market.

A newly formed public-private research consortium intends to explore innovative financial instruments that can be used for transferring systemic risks, with parametric bonds one of the solutions set to be studied.

Schroders, the global asset manager with a specialist insurance-linked securities (ILS) investment management business, has updated the investment strategy and policy of its flagship UCITS catastrophe bond fund, the Schroder GAIA Cat Bond, to incorporate specific ESG and sustainability features.

Alecta, which is the largest pension fund in Sweden, intends to take a long-term view on the insurance-linked securities (ILS) sector and according to a report is planning to make further investments into reinsurance related risks through ILS strategies.