Reinsurance linked investment

One of the themes coming out of this results season, as re/insurers announce their fourth-quarter and full-year 2021 earnings, is a growing confidence in the ability to expand margins and secure further growth, in a firming reinsurance marketplace.

Here are the ten most popular news articles, week ending January 30th 2022, 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.

Senior executives at investment specialist Neuberger Berman have highlighted insurance-linked securities (ILS) as an alternative asset class that should be particularly attractive to investors at this time.

Managers of third-party reinsurance capital and insurance-linked securities (ILS) should anticipate a more challenging fundraising environment through 2022, as investor scepticism is currently high after recent years of catastrophe losses, according to RenaissanceRe CEO Kevin O’Donnell.

Hudson Structured Capital Management (HSCM), the reinsurance, insurtech, insurance-linked securities (ILS) and transportation focused investment manager, has provided Series A investment capital and facilitated a $250 million lending commitment for a “buy now, pay later” focused insurtech named Ascend.

The market for subordinated insurance debt bonds is expected to bottom out soon, as more clarity is gained on the future direction of interest rates. But while this can slow issuance of insurance bonds and debt, specialist investment manager Plenum Investments believes an opportunity is emerging for investors to capitalise on market forces.

After announcing that one of Switzerland’s cantonal banks, Graubündner Kantonalbank, is taking a 30% stake in the Zurich-headquartered catastrophe bond, insurance-linked securities (ILS) and reinsurance linked investment fund manager, Twelve Capital explained to us that this brings stability to its shareholder base.

The forward-looking return potential of many insurance-linked securities (ILS) fund portfolios continued to rise over the last year and it’s likely this has accelerated through January 2022, as price rises in reinsurance and retrocession boost no-loss and expected return metrics.

Speaking to insurance-linked securities (ILS) funds and investors in 2022, the London insurance and reinsurance market is seen as a venue where deploying capital to access differentiated insurance or reinsurance-linked returns is increasingly attractive, but still ease of access is cited as a problem.

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.