Traditional reinsurance capital to shrink, ILS to grow in 2022: AM Best & GC

According to the latest estimate and forecast for dedicated reinsurance capital from rating agency AM Best and broker Guy Carpenter, overall reinsurance market dedicated capital is expected to shrink, as traditional capacity falls, but ILS or third-party capital rises. While reinsurance capital remains plentiful, according to AM Best’s latest market report, the current forecast is […]

Visualising higher catastrophe bond pricing, multiples & spreads

In recent months, if you’re interested in insurance-linked securities (ILS) or active in the ILS marketplace, you could not have missed the widely discussed issues of spread widening seen in catastrophe bonds, or the hardening of reinsurance pricing and how that spills over to ILS rates and returns. Cat bond spreads began widening in earnest […]

Swiss Re launches cat bond investment adviser, with Guatteri as CEO

Global reinsurance firm Swiss Re has set up a new insurance-linked securities (ILS) venture, launching an SEC registered investment adviser today named Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC), which will have a focus on catastrophe bond investment management. The move comes as the reinsurance giant continues to build-out and formalise its capabilities in managing […]

Cat bond market resilient through macroeconomic headwinds: Aon

Despite the significant macroeconomic headwinds that posed a threat to investor capital and impacted most financial markets through the second-quarter of 2022, the catastrophe bond market was resilient by comparison, with the period seeing its third-highest volume of new cat bond issuance. This is according to Aon Securities, the capital markets, catastrophe bond and insurance-linked […]

Lloyd’s to announce significant London Bridge 2 ILS expansion plan

Lloyd’s of London will today announce a significant expansion of its London Bridge insurance-linked securities (ILS) platform, with a plan to welcome more capital, new types of reinsurance transactions and make the transfer of different kinds of risks to capital market investors simpler. Dubbed London Bridge 2, according to the Financial Times that was given […]

RenRe grows Medici 25% in attractive cat bond market: CEO

For global reinsurance firm RenaissanceRe, the Medici catastrophe bond focused investment fund strategy has been one of its sources of growth in third-party capital assets under management in recent years, a trend that continued in 2022. Like many other managers of third-party reinsurance capital assets, or insurance-linked securities (ILS) strategies, RenaissanceRe saw outflows from some […]

Asia Insurance Review: Hybrid solutions for China’s natural catastrophes

Even as countries across the globe grapple with climate change, alternate risk transfer mechanisms like parametric solutions are emerging as the best option. Phoenix CRetro Reinsurance’s Mr Kirill Savrassov and Tenax Capital’s Mr Toby Pughe spoke with Asia Insurance Review. By Anoop Khanna According to a PwC report published in May 2022, the insurance protection gap could reach $1.86tn by 2025 and […]

Cat bonds one of the most prominent innovations in sustainable finance: IMF

According to a staff climate paper published by the International Monetary Fund (IMF), catastrophe bonds are one of “the most prominent innovations in the field of sustainable finance in the last 15 years,” but the organisation believes more use of them is needed to cover burgeoning catastrophe and climate risks. Catastrophe bonds sit alongside green […]

Munich Re: Natural disaster review for first half of 2022

In the first half of 2022, natural disasters caused overall losses of US$ 65bn, with slightly more than half of these insured Extreme multi-day rainfall and severe flooding in Australia constituted the main loss burden for the insurance industry of at least US$ 3.7bn US once again country with highest weather-related losses Number of fatalities […]

Insurance bonds among best paying for yields, with significant upside: Twelve

Insurance bonds should not be ignored as a defensive investment opportunity with both yield and upside potential, according to Twelve Capital, with the manager believing that market dynamics have created a particularly attractive entry point for investors. With global financial and capital markets volatility continuing, inflation high, interest rates rising and a continued backdrop of […]