Trapped ILS capital news

While the industry has spent considerable time implementing ways that capital enters ILS vehicles, the mechanism for how it exits has often been treated as an afterthought. Artex Capital Solutions is dedicating effort towards building vehicles that provide a clear entry and a clear exit, with CEO Kathleen Faries emphasising that delivering clarity at the […]

Enstar, one of the largest legacy and run-off reinsurance specialists in the world, has recently begun fronting for capital providers including insurance-linked securities managers and sees this new offering a diversifying solution for its toolkit and one it intends to selectively develop further, Anguel Zaprianov explained to Artemis in a recent interview.

The legacy and run-off market is evolving to trade much more like the live market, according to speakers at the Insurance & Reinsurance Legacy Association (IRLA) annual Congress event held in Brighton today, while the opportunity to trade with and support ILS investor exit and liquidity needs is expected to continue, especially in casualty risks.

As legacy and run-off reinsurance specialist, Enstar increasingly provides solutions for the insurance-linked securities (ILS) market, we spoke with Dan Sanford, Managing Director, M&A, at the company’s office in Bermuda, about the role of ILS in the legacy space.

Artex Capital Solutions, the insurance-linked securities market service provider and insurance management specialist has partnered with legacy and run-off reinsurance specialist Enstar to introduce structured exit options embedded within Artex’s ILS vehicles.

Following the annual AIFA conference held in Florida this week, a new report from analysts at Jefferies reveals that industry executives believe it would take a single $100 billion insured loss event to derail the insurance-linked securities (ILS), catastrophe bond, and reinsurance markets.

For the insurance-linked securities (ILS) market to expand beyond its current size, investors must be willing to partner more closely with cedents and provide solutions that address the full spectrum of their needs, rather than focusing narrowly on a single line of business, Shiv Kumar, President of GC Securities told us in an interview.

Executives from Enstar, one of the largest legacy and run-off reinsurance specialists in the world, told Artemis that they are seeing strong interest for its solutions from the insurance-linked securities (ILS) funds sector, as managers seek mechanisms to provide liquidity to their investors.

The reinsurance market is maintaining structural discipline at this time, with the lack of meaningful new entrants seen as one driver. But rating agency AM Best has asked today whether the stronger foundations of the industry can prove durable this time, while also noting that the structural reset has benefitted ILS investors as well.

The supply-demand balance for global non-marine retrocession continued to tilt in buyers’ favour, as cedants were presented with opportunities to expand their retro purchases at the mid-year reinsurance renewals and some market participants took a commercial view on collateral trapping, according to Gallagher Re.