Reinsurance linked investment

Alternative capital within the reinsurance market has “not yet reached its full capacity,” according to Guy Carpenter’s CEO of EMEA and Global Capital Solutions, Laurent Rousseau, who said today that his firm anticipates further growth of the ILS and capital markets backed capacity.

At our Artemis London 2025 conference yesterday speakers highlighted a catastrophe bond and insurance-linked securities (ILS) market full of opportunity, but one where the need for transparency, communication and a continued push towards modernisation are key.

There has been a notable increase in the target investment allocation range for reinsurer SCOR’s sidecar vehicle Concordia Re, in the insurance-linked securities (ILS) portfolio managed by PGGM, the Dutch pension fund investment manager, on behalf of its end-client Dutch pension PFZW.

Pula, a Swiss headquartered specialist in parametric agriculture insurance for micro and mesa use-cases across Africa and parts of Asia, has established a collateralized insurer class of company in Bermuda, named Pula Reinsurance Ltd., Artemis has learned.

Leading rating agencies adjusted their outlooks for the global reinsurance sector yesterday, becoming in general a little more negative for prospects in the space and warning of higher competition. But still, the range of outlooks spans from positive, through stable, to deteriorating, suggesting uneven outcomes and that returns will still be attractive where discipline holds.

Analysts at Moody’s Ratings expect the alternative reinsurance capital space to continue to expand over the long-term, stating that much of the growth will come from reinsurers with additional growth expected from non-catastrophe risk, as the rating agency shifts its outlook on the global reinsurance sector to stable from positive.

Speaking with Artemis, the leadership of Nephila Capital, one of the world’s largest and longest-standing insurance-linked securities (ILS) managers, explained their focus remains serving investors and being a valued trading partner with cedants.

Investment banking giant Goldman Sachs has hired two experienced catastrophe bond and insurance-linked securities (ILS) structuring specialists, as it looks to expand its capabilities in the space once again, Artemis has learned.

Nephila Capital, one of the world’s largest and longest-standing insurance-linked securities (ILS) managers, has selected financial technology provider SEI to support its back and middle-office operations in both North America and the UK, as the manager continues to grow its presence in the ILS market.

Reflecting on the substantial growth that’s been seen across the insurance-linked securities (ILS) market over the last few years, Gareth Abley, Co-Head of Alternative Strategies at MLC Asset Management maintains his belief that the space remains “really attractive” today.