non-cat ILS

As the insurance-linked securities (ILS) market continues to evolve, both catastrophe and non-catastrophe models are critical components for trading, particularly in the 144A format, according to executives at Moody’s, who told Artemis that they view the ILS sector as a “very important element” of the re/insurance market.

After a challenging few years that began with the hurricane-heavy season of 2017, the insurance-linked securities (ILS) market has entered a sustained period of strong returns. The rebound is also reshaping recruitment trends, with rising demand being seen for talent in business development and analytics, according to 20Twenty Search’s Jason Sykes.

During a recent interview with Artemis, Kier James, Chief Underwriting Officer of MultiStrat, discussed the firm’s recent growth across the insurance-linked securities (ILS) market, while also highlighting how retro market conditions have become more favourable for buyers throughout recent months.

Specialty Risk RE (SRR), a non-cat property and casualty focused collateralised reinsurer launched in 2024, has successfully closed an initial $50 million institutional funding round, led by private equity firm NMS Capital Group.

Phoenix Merchant Partners, LP, a middle-market focused investment firm, has announced the closing of its debut transaction, that finances a non-catastrophe P&C reinsurance company named Gryphon Holdings, while also announcing the hire of Julia Henderson as Managing Director, Insurance Solutions.

With property catastrophe reinsurance rates and pricing having soared in recent months, rating agency AM Best sees this as a potential headwind for the burgeoning non-cat insurance-linked securities (ILS) segment, as investors focus may shift back to catastrophe risks.

When it comes to the non-catastrophe side of the insurance-linked securities (ILS) market, there is an opportunity to address funding gaps that exist in the industry and have held back growth, while at the same time delivering new and relatively uncorrelated asset classes, Vesttoo’s CEO Yaniv Bertele explained at an event last week.

Attendees at Artemis’ annual insurance-linked securities (ILS) conference in New York City heard from industry leaders and experts about where the sector should go next, as it continues to explore new lines of business amid a hardening catastrophe marketplace.

Speaking about the emerging non-property, or non-catastrophe, insurance-linked securities (ILS) market and its prospects for growth, Andy Marcell, the CEO of Aon’s Reinsurance Solutions acknowledged growing activity there, but said it’s too early to expect it to affect the supply-demand equation.

The base of insurance-linked securities (ILS) investors that are interested in casualty, or longer-tailed P&C reinsurance risks, is expanding, according to rating agency AM Best, who noted increasing interest in the non-catastrophe segment of the ILS market.