Insurance linked securities news, ILS news

Beazley, the Lloyd’s market focused specialist insurance and reinsurance underwriter, has continued to expand its market facilities business line which includes its third-party capital backed beta-like market tracking structures.

Italian primary insurance company UnipolSai Assicurazioni S.p.A. demonstrated a long-lasting commitment to engaging with the insurance-linked securities (ILS) market with its recently completed EUR 100 million Azzurro Re II DAC (Series 2020-1) catastrophe bond, according to executives at Willis Re.

Even in the face of Covid-19, the resilience of the insurance-linked securities (ILS) market has been impressive, but moving forward, the entire risk transfer industry needs to be more attentive to emerging complex risks, says Benny Chey, Assistant Managing Director (Development and International), Monetary Authority of Singapore (MAS).

The past few months have provided unprecedented challenges for all areas of the global financial markets, but for insurance-linked securities (ILS) players, the ongoing desire for un-correlated assets presents a great opportunity, according to industry experts.

The Alturas Re Ltd. collateralised reinsurance sidecar vehicle of global specialist re/insurer AXIS Capital has completed a new issuance of 3,628 preferred shares, meaning options for third-party investors to access the returns of AXIS’ underwriting business seemingly expand.

The alternative, or third-party reinsurance capital market, has permanently altered the structure of reinsurers and will continue to do so moving forward, according to Dr. Morton Lane, President, Lane Financial LLC, and Director, The University of Illinois in Urbana-Champaign.

Transmission equipment owned and operated by Pacific Gas and Electricity (PG&E) has been deemed to be the cause of the 2019 Kincade wildfire in Sonoma County California, which could put the company and its insurers on the hook for over $600 million of costs.

The participation of the capital markets in financing the world’s most pressing risks is an important source of capacity and investors could support up to $2 billion of capacity to back pandemic catastrophe bonds, Hannover Re CEO Jean-Jacques Henchoz explained in a recent interview.

Welcome to Artemis’ fifth Bermuda-focused ILS executive roundtable, which owing to restrictions caused by the ongoing Covid-19 pandemic was held virtually.

The current hard market phase in insurance and reinsurance “has legs” as the levels of capital remain constrained in both traditional and alternative capital markets, analysts at Barclays have said.