Reinsurance linked investment

The reinsurance sidecar market has continued to expand through the second-quarter of 2024 and broker Aon’s Reinsurance Solutions team estimates that over $1 billion of capital has entered this proportional collateralized reinsurance market in the last year.

The overall yield of the catastrophe bond market in US dollars rose slightly through June and ended the month at just under 13.7%, reaching levels last seen in August 2023.

Reinsurance broker Guy Carpenter has said that the fact expected mid-year insurance-linked securities (ILS) fund raises were “somewhat lower than expected” had a bearing on the just completed renewals.

Here are the ten most popular news articles, week ending June 30th 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.

The amount of alternative capital in the reinsurance industry has reached another new high at the middle of 2024, with capital allocated to alternative and insurance-linked securities (ILS) structures now reaching $110 billion, according to Aon.

Howden Capital Markets & Advisory (HCMA), the insurance and reinsurance broker’s capital markets and insurance-linked securities (ILS) specialist unit, has hired J.P. Morgan’s Sébastien Bamsey as Managing Director (MD), as the firm continues to build out its European team.

Markel has announced the promotion of Phil Schmidt to the role of Chief Strategy Officer, a position that will see him tasked with leading initiatives that bring together and realise synergies from the insurance and reinsurance related units of the company, including insurance-linked securities (ILS) operation Nephila Capital.

The Saskatchewan Healthcare Employees’ Pension Plan (SHEPP) saw it’s allocation to the insurance-linked securities (ILS) asset class via managers Aeolus Capital Management and Nephila Capital deliver an impressive 26.4% return in 2023.

The hard market in reinsurance is different this time around, with no evident lack of capital or capacity and this is just one factor that has meant we aren’t seeing a wave of new reinsurance startups, something broker Gallagher Re’s Brian Shea says is likely to persist, except perhaps in the casualty space.

Bermuda-headquartered specialty insurer and reinsurer, AXIS Capital, recently hired Matthew Galbraith, formerly of Parameter Climate and TigerRisk Partners, as an insurance-linked securities (ILS) Analyst.