Catastrophe bonds rarely more compelling on a relative basis: Icosa
On a relative basis, catastrophe bonds have rarely presented a more compelling investment opportunity than today, as despite spreads having tightened somewhat the cat bond asset class diversification offering can be at its strongest when other assets like equities are overvalued, fund manager Icosa Investments has said. Previously, the investment manager has explained that with […]
UK Gov launches ISPV reform consultation including accelerated cat bond pathway
The UK’s Prudential Regulation Authority (PRA) has now officially launched its consultation on reforms for the insurance special purpose vehicle (ISPV) regulatory regime, which includes the accelerated pathway for certain catastrophe bond applications and a 10-day target for approvals of certain ILS arrangements. The consultation was teased back in September, when we first reported that […]
ILS growth supports sustainable disaster recovery, community resilience: Baillie Gifford
According to James Squires, Head of Multi Asset and Partner at Baillie Gifford, the risk-based premium structure of insurance-linked securities encourages important mitigation and resilience measures by communities, governments, and insurance providers. In a report focusing on the resurgence of the ILS market in recent years, Squires highlighted how this financial instrument can mitigate the […]
Investment giants KKR & Capital Group launch multi-strat interval funds with ILS remit
Indicative of a broader and still developing trend we’ve been covering in recent years, of multi-asset managers adding catastrophe bonds and other insurance-linked securities (ILS) as eligible assets within prospectuses, KKR and Capital Group have begun marketing a pair of 40’s Act interval style mutual funds with ILS part of their remit. While this is […]
City National Rochdale ILW fund roughly flat after pre-hurricane season positioning
After positioning itself in advance of the US hurricane season through Q2 this year, the City National Rochdale Select Strategies Fund, a US mutual insurance-linked securities (ILS) fund that invests in industry-loss warranties (ILW’s) and industry-index trigger catastrophe bonds, was relatively flat in AUM terms. When we last covered this 40’s Act US mutual fund […]
HNW investor demand for alternatives “growing exponentially” – Brookfield Oaktree
High-net-worth investors want to deploy more capital to alternative asset classes, while they also desire a greater variety of alternative investment products as well, believing that adding alternatives to their portfolios can drive stronger long-term outcomes, data from Brookfield Oaktree Wealth Solutions suggests. Owned by investment giants Brookfield Asset Management Ltd. and Oaktree Capital, with […]
Cat bonds offering superior returns, diversification and a lower risk profile: Fitch
Catastrophe bond investments are currently offering investors a superior total return, diversification versus other asset classes and currently a lower risk profile than had been seen in recent years, Fitch Ratings has noted. The rating agency believes that record issuance of insurance-linked securities (ILS) is set to continue, as insurance and reinsurance firms tap the […]
APRA looks to enhance Australian insurer access to ILS and cat bonds for reinsurance
Recognising that regulations hinder access to alternative reinsurance solutions including insurance-linked securities (ILS) in the country, the Australian Prudential Regulation Authority is consulting with industry, as participants there want easier access to solutions such as catastrophe bonds. In a letter to the Australian insurance industry, APRA Member Suzanne Smith explained that the regulator is consulting […]
For Asia to realise ILS market potential, local investor participation must increase: Fitch
While the Asia region is expected to see steadily increasing activity in catastrophe bonds and other insurance-linked securities (ILS), Fitch Ratings believes the participation of regional investors needs to increase, while continued development of regulatory frameworks and local expertise is also required. Fitch Ratings said that it anticipates, “a gradual increase in insurance-linked securities (ILS) […]
MDB’s can help bring scale to ILS issuances in Asia: Singapore Deputy PM
Speaking at the 20th Singapore International Reinsurance Conference (SIRC), Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of the Monetary Authority of Singapore, explained that multilateral development banks have a key role to play in bringing scale to insurance-linked securities (ILS) issuances in Asia. During his speech, the […]