Private insurance-linked securities news

For investors looking at insurance-linked securities (ILS), in order to gain the full diversifying benefits of an allocation to the asset class, it is important to look to the private ILS and collateralised reinsurance segment as well as catastrophe bonds, Zeba Ahmad, Alternatives Director at Schroders has said.

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.

We can now report that it was Toa Re Europe, the Switzerland-based European reinsurance arm of Japanese group Toa Reinsurance Company Ltd., that sponsored the recent $25 million Artex SAC Limited – Silver Crane Notes private catastrophe bond transaction, as it looks to expand its relationships with ILS investor markets.

For the first time on-record, annual issuance of privately placed catastrophe bond transactions has surpassed $1 billion in 2021, as these more streamlined insurance-linked securities (ILS) arrangements continued to play an important role for some protection buyers, ILS funds and investors.

A significant institutional investor has again committed to supporting nuclear liability risks in insurance-linked securities (ILS) form, with the renewal of two deals covering risks of corporate nuclear power operators in a format considered akin to a private catastrophe bond.

The Artex Risk Solutions owned segregated account reinsurance transformer platform, Artex SAC Limited, has completed issuance of a new private catastrophe bond, with a $25 million Artex SAC Limited – Silver Crane Notes transaction coming to market.

Direct proportional sidecar and quota share reinsurance or retrocession arrangements are helping that segment of the insurance-linked securities (ILS) market to expand after a few years of challenges, reinsurance broker Guy Carpenter has reported.

Eclipse Re Ltd., the Horseshoe managed private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform, has issued four more private cat bond series of notes, together totalling $277 million, which now take private cat bond issuance above $1 billion so far in 2021.

Eclipse Re Ltd., the Horseshoe managed private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform, has issued four new tranches of cat bond notes, totalling roughly $45.2 million, with the four tranches potentially part of the same reinsurance or retrocession program arrangements.

Demand for alternative reinsurance capacity to support sidecars and quota share structures is outpacing supply, according to Shiv Kumar who explained that the reinsurance sidecar market has grown despite facing challenges in recent years.