Private insurance-linked securities news

The insurance-linked securities (ILS) market needs to defend the gains it has made in improved terms and conditions, making sure technical underwriting standards are maintained, Marcel Grandi of investment manager Twelve Capital has said.

The first-half of 2022 saw private insurance-linked securities (ILS) funds, so those allocating to collateralised reinsurance, retrocession and other ILS assets, as well as catastrophe bonds, deliver an average performance, in terms of returns to their investors.

Eclipse Re Ltd., the Artex-managed and operated private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform, has completed the issuance of an $8.73 million Eclipse Re Ltd. (Series 2022-2A) transaction in recent days.

Artex Risk Solutions’ segregated account reinsurance transformer platform, Artex SAC Limited, has completed another new private catastrophe bond issuance, with a $100 million Artex SAC Limited – Bricolage Notes transaction placed privately with qualified investors.

Two tranches of privately placed catastrophe bond notes from the $250 million Artex SAC Limited – Aquarelle Notes transaction that came to market in 2021 and was thought to be the largest private cat bond ever, have been through a variable reset process at the request of the ceding insurer.

Eclipse Re Ltd., the Horseshoe managed private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform, has completed the first issuance we’ve seen of 2022, with a $75 million Eclipse Re Ltd. (Series 2022-1A) transaction coming to light.

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.