Insurance linked securities news, ILS news

Mortgage insurance group NMI Holdings, Inc. has now successfully secured $364 million of collateralised mortgage reinsurance protection from the capital markets with the Oaktown Re VII Ltd. transaction, which is its second mortgage insurance-linked notes issuance of the year.

With rising catastrophe losses impacting insurance and reinsurance markets, S&P Global Ratings believes that use of insurance-linked securities (ILS) is going to increase.

Retrocessional reinsurance focused ILS investment funds and strategies could find as much as 70% to 80% of their capital trapped or lost after the challenging catastrophes of 2021, according to RenaissanceRe’s CEO Kevin O’Donnell.

The results of our latest global reinsurance market survey, in collaboration with Reinsurance News, suggest that the use of insurance-linked securities (ILS) capacity is likely to rise again at the January 1st, 2022 renewals.

U.S. primary mutual insurance company USAA is hoping to upsize its latest catastrophe bond, with the new Residential Reinsurance 2021 Limited (Series 2021-2) transaction now seeking up to $300 million of collateralized multi-peril property catastrophe reinsurance for the insurer, while price guidance has been lowered.

Markel CATCo Investment Management said this morning that it has received a “substantial level of investor support” for its proposed buyout transaction to speed the winding up of its retrocessional reinsurance investment funds and has updated the terms to be more favourable, in response to investor feedback it seems.

Sources have told us that the recently issued $21.5 million Isosceles Insurance Ltd. (Series 2021-H) private catastrophe bond transaction provides reinsurance coverage for a motor insurance portfolio.

On still improving prospects for the sector, hedge fund specialist manager K2 Advisors has updated its view to “strongly overweight” for catastrophe bond and private insurance-linked securities (ILS) investments, saying that pricing indications for the January renewals look strong as well.

RenaissanceRe, the Bermuda-based reinsurance firm and third-party capital management specialist, revealed that investors in its managed insurance-linked securities (ILS) fund strategies and joint-ventures took their share of catastrophe losses in the third-quarter, denting fee income from these activities during the period.

Catastrophe bond and insurance-linked securities (ILS) new issuance continues apace in 2021, with the total issued and tracked by Artemis so far this year now above $16.1 billion, meaning that a new annual issuance record is expected to be reached imminently.