Reinsurance linked investment

The insurance industry loss from the collapse of the Francis Scott Key Bridge in the US city of Baltimore after container ship Dali struck one of its support columns is estimated to be above the $1.5 billion of the Costa Concordia disaster, with as much as $4 billion in industry losses anticipated.

Syndicate 2357 at Lloyd’s, which is the flagship syndicate operated by Nephila Capital, a leading dedicated investment manager in the insurance-linked securities (ILS), weather and catastrophe reinsurance space, has reported a 65% increase in profits for 2023, as its combined ratio came in at a very low 25.5% for the year.

Twelve Capital, the Zurich headquartered insurance-linked securities (ILS) and reinsurance investment manager, has launched a new UCITS fund strategy that will be largely invested in catastrophe bonds, but also have a corporate bond component to offer investors a different risk-return profile, Artemis can reveal.

The reinsurance market is expected to bear the brunt of losses from the collapse of the Francis Scott Key Bridge in the US city of Baltimore after container ship Dali struck one of its support columns, which rating agency AM Best said will add to the increasing challenges of reinsurance availability.

According to Jay Madhu, the Chairman and Chief Executive Officer of Cayman headquartered reinsurer Oxbridge Re, the firm’s first series of tokenized reinsurance sidecar securities are set to deliver investors a 45% return, surpassing the initial expectation of 42%.

The increased supply of new catastrophe bonds into the market through the first-quarter and the growing pipeline into April will help to stabilise cat bond spreads, Twelve Capital’s Head of Investment Solutions Vittorio Sangiorgio has said.

Capital continued to rotate from one insurance-linked securities (ILS) instrument to another in 2023, but AM Best analysis suggests some sectors may becoming better primed for growth through 2024.

After a hearing held on Friday in the Supreme Court of Bermuda, an order has been filed that sanctions the settlement agreements that had been proposed under the Vesttoo Chapter 11 bankruptcy and approval was given for the joint provisional liquidators (JPL’s) to Aon’s White Rock to remove their objections to the plan.

Here are the ten most popular news articles, week ending March 24th 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.

This video features an expert panel discussing trends in insurance-linked securities (ILS) investor sentiment and appetites at our Artemis ILS NYC 2024 conference, held in New York on February 9th 2024.