Reinsurance linked investment

A strong performance and recovery in June as catastrophe bond spreads largely came back into line has helped the first-half 2024 average return of UCITS catastrophe bond funds reach 4.72%, according to the Plenum CAT Bond UCITS Fund Indices.

The fact the insurance-linked securities (ILS) market is healthy, has resumed growth and delivered attractive returns to its investors, may now be a contributing factor in diminishing investor interest in backing balance-sheet reinsurance startups, according to AM Best.

Here are the ten most popular news articles, week ending July 7th 2024, 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 or get our email alerts for every article we publish.

While the catastrophe bond market has been flying in 2024, with records falling and a significant half-year total of $12.6 billion issued, analysts at investment bank J.P. Morgan rightly point out that the cat bond market alone is not bringing significant net-new reinsurance capital to the market.

Despite the fact catastrophe bond spreads widened considerably in May 2024, the Eurekahedge ILS Advisers Index still managed a positive return for the month, helped by the returns of collateralised reinsurance and retrocession investments from the private ILS funds it tracks.

Schroders Capital, the private markets business of Schroders Group and manager of around $5 billion of insurance-linked securities (ILS) assets, has collaborated with German reinsurance firm Hannover Re on a pilot tokenisation project, designed to enhance the way ILS assets are invested and managed.

The City National Rochdale Select Strategies Fund, a US mutual insurance-linked securities (ILS) fund focused on investments into industry-loss warranties (ILW’s) and industry-index trigger catastrophe bonds, saw slight growth through the latest quarter of record, ending April 2024 with approximately $227.4 million of net assets.

Keystone ILS Capital, a structuring and advisory specialist focused on catalysing more active use of insurance-linked securities (ILS) in Japan that was launched in the country by former Aon Securities executive Shinji Yamamoto, has received an investment from broking group Howden and appointed Carsten Thienel as a Senior non-executive Director, Artemis can report.

Stone Ridge Asset Management, the New York based alternative risk premia focused investment manager, has continued to add more capital to its mutual insurance-linked securities (ILS) fund strategies in the last quarter of record, reaching over $4.4 billion in net assets across these registered funds by the end of April this year.

There was increased demand for retrocessional protection around the mid-year reinsurance renewals, as existing buyers sought to purchase more retro and some historical buyers returned to the market, according to Guy Carpenter.