Insurance linked securities news, ILS news

Generally, insurance-linked investment fund managers have moved up a ranking of alternative asset managers over the last year, as their assets under management increased propelling them upwards. But the potential for ongoing growth is clear, as ILS only makes up 0.6% of the surveyed asset base.

Alternative reinsurance capital grew 6% to $86 billion by the end of Q1 2017 and its resurgence prior to the mid-year June and July 2017 renewals has been a benefit to buyers of protection, helping them secure additional cost-savings and coverage enhancements, according to broker Aon Benfield.

Global reinsurance firm TransRe, which operates as Transatlantic Holdings, Inc. and its subsidiaries such as Transatlantic Reinsurance Company, and is owned by Alleghany Corporation, has appointed Kyle Rhodes as its Global Head of Business Development, a role that will see him assist on the third-party capital side.

International renewable energy and weather risk underwriting specialist GCube has expanded its team with the addition of two new underwriters in its London office, as it looks to continue its expansion.

Here are the ten most popular news articles, week ending 16th July 2017, 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.

Alternative sources of reinsurance capital, largely from ILS funds and other collateralized markets, is increasing its market share in commercial insurance, particularly in catastrophe exposed property space where rates are declining so far that traditional insurers are starting to reduce their risk appetites, according to Moody’s.

Insurance and financial services group AmTrust is set to secure an efficiency priced layer of fully-collateralized reinsurance coverage from the capital markets, as the pricing has now been fixed at the bottom end of already reduced guidance for its first catastrophe bond, the $100 million Fortius Re II Ltd. (Series 2017-1) deal.

Mexico has returned to the catastrophe bond market with a new transaction seeking a source of reinsurance risk transfer for its Fund for Natural Disasters (El Fondo de Desastres Naturales), better known as FONDEN, in a $290 million deal we’ve called IBRD / FONDEN 2017, assisted by the World Bank.

Insurance-linked securities (ILS) and catastrophe bond investment managers and their end-investors have been working hard to increase their market share in 2017, with pricing becoming increasingly efficient and now reports suggesting that terms and conditions of coverage have largely converged.

The recently completed €40 million Windmill I Re Ltd. (Series 2017-1) catastrophe bond transaction is the first to use a European windstorm risk model from Aon Benfield’s risk modelling centre of excellence Impact Forecasting.