Reinsurance linked investment

With the January 2021 renewals of reinsurance and retrocession programs supposed to be allocated, signed and all but completed by now, we’re told that this year there is still more work to do in working out shares of certain layers of retro towers.

Stone Ridge Asset Management’s mutual insurance-linked securities (ILS) fund assets fell again in the last quarter of record, sliding just under 6% to end October 2020 with $3.82 billion of ILS assets across the two fund strategies.

Vesttoo, a technology firm that uses proprietary artificial intelligence and machine learning solutions with the goal of helping companies assess and transfer risks to the capital markets, has taken an investment from a fund focused on the longevity economy.

Kairos Acquisition Corp., the new insurance, reinsurance and insurtech focused Special Purpose Acquisition Company (SPAC), or blank check company, that Hudson Structured Capital Management Ltd. is behind, has increased the size of its initial public offering by 20% to raise $240 million.

The Pioneer ILS Interval Fund, a dedicated insurance-linked securities (ILS) focused mutual investment fund strategy managed by Amundi Pioneer Investment Management, added almost 11% to its total net assets in the last quarter of record, while reporting an impressive 7.7% return for the full-year.

The expected capacity shortage in the retrocessional reinsurance market did not materialise to the degree anticipated at the January 2021 renewals, resulting in a market that still firmed considerably, but did not experience the hardening many had been hoping for.

Fermat Capital Management LLC, the Westport, Connecticut headquartered investment fund manager that, has lifted its catastrophe bond and insurance-linked securities (ILS) assets under management to $7.5 billion before the end of 2020.

Global risk-adjusted property catastrophe reinsurance rates-on-line rose by an estimated 6% at the January 2021 reinsurance renewals, according to analysis by Howden Broking.

The January 2021 reinsurance renewals are approaching completion and it looks as if third-party and collateralized sources of reinsurance and retrocession capacity have played a key role again, with capital markets sources of funding growing across the marketplace.

Catalina Re, the reinsurance arm of legacy and run-off specialist Catalina Holdings, has hired Tom Duggan, a well-known investment analyst who previously had a focus on insurance-linked securities (ILS) among the asset classes he covered.