trapped collateral


Trapped collateral may persist, but new capital is out there: Willis Re execs

Trapped capital is expected to remain and pose an ongoing challenge for some investors and managers from across the insurance-linked securities (ILS) space, according to executives at Willis Re, the reinsurance arm of broker Willis Towers Watson (WTW). With conditions continuing to trend more favourably for reinsurers as the key, January read the full article →

Trapped ILS capital COVID issues largely postponed beyond renewal

Issues related to the potential for insurance-linked securities (ILS) collateral to be trapped, because of uncertainty over the COVID-19 pandemic and its potential losses for the insurance and reinsurance industry, have largely been postponed until after the January renewals. While numerous insurance-linked securities (ILS) fund managers have already prudently reserved against read the full article →

Rating unchanged on ILS Capital’s Prospero Re after business plan update: KBRA

According to rating agency Kroll Bond Rating Agency (KBRA), the now approved updated business plan for ILS Capital Management's reinsurance company Prospero Re Ltd., which allows it to write both fully collateralized and traditional reinsurance with an element of leverage, does not warrant any change to the vehicles rating. Bermuda headquartered read the full article →

Global catastrophe losses running 8% above 10-year average: Jefferies

So far in 2020, global catastrophe and severe weather losses falling to the insurance and reinsurance market are running approximately 8% above the 10-year average, according to analysts at Jefferies. Overall, insured losses from catastrophes and severe weather are roughly 18% higher than the long-term average, closing in on US $80 read the full article →

ILS Capital’s Prospero Re approved to write collateralized & traditional reinsurance

ILS Capital Management Ltd. has now received approval from the Bermuda Monetary Authority (BMA) for an expansion of the operating model of its reinsurance company Prospero Re Ltd., which can now write both fully collateralized and traditional reinsurance with an element of leverage. We explained back in February that Bermuda headquartered read the full article →

ILS funds reserve for COVID BI exposure on some European cat programs

Some insurance-linked securities (ILS) funds that invest in collateralised reinsurance contracts have been setting reserves for potential exposure to business interruption losses due to the COVID-19 pandemic in a handful of the major European catastrophe reinsurance programs, we understand. We're told that these reserves have largely been set in October, with read the full article →

Reinsurance could take brunt of COVID second wave losses: Barclays

Reinsurance capital could find itself on the hook for the largest share of COVID-19 losses from second waves of the virus sweeping Europe, with primary insurers largely happy with their loss-picks so far, analysts at Barclays have said. As Europe entered its second wave proper of the COVID-19 coronavirus pandemic in read the full article →

CATCo successful in releasing another $8m of capital from side pockets

The CATCo Reinsurance Opportunities Fund Ltd., Markel CATCo Investment Management’s listed retrocession focused investment fund, has successfully secured another release of trapped capital which will be returned to its investors. The Markel CATCo managed retrocessional insurance-linked securities (ILS) fund has been successfully unlocking trapped capital that had been set aside for read the full article →

PCS’ Johansmeyer expects capital availability could be a major issue

The implications of the ongoing Covid-19 pandemic on the re/insurance market suggests that the availability of capital is going to be a major issue, according to Tom Johansmeyer, Head of PCS. Yesterday, Johansmeyer delivered a thought-provoking keynote to open the penultimate day of the annual re/insurance and insurance-linked securities (ILS) conference, read the full article →

Around 15% of ILS funds have COVID BI loss reserves of over 4%

Some higher-risk insurance-linked securities (ILS) and collateralised reinsurance funds have been forced to reserve more than 4% of their fund assets in case of losses from business interruption claims caused by the COVID-19 pandemic, a report suggests. For the ILS fund market, the main exposure to losses from the pandemic is read the full article →