Cat bonds and sidecars to see biggest increases in demand over next year: Moody’s
Over the next year, reinsurance buyers have expressed a strong preference for catastrophe bonds when it comes to utilising alternative capital, while sidecars are also expected to see much more elevated demand, the latest survey by Moody’s Ratings shows. Each year just in advance of the Monte Carlo Rendez-Vous event, Moody’s Ratings surveys reinsurance buyers […]
Reinsurance and ILS capital crucial to support multi-transition of global economy: S&P
As the world navigates major challenges, the transitions that are required to do this effectively are going to call on risk capital and the expertise of the global insurance and reinsurance industry, with its capacity, including ILS and alternative sources, seen as a crucial form of financing, according to S&P Global Ratings. Speaking today in […]
Role for cat bonds as climate adaptation financing gap grows: Citigroup
Analysts at Citigroup have highlighted a growing financing gap in climate adaptation efforts, saying that as this gap grows and steps to mitigate climate change remain at a pace considered too slow, there will be a need for increasing amounts of capital and catastrophe bonds are a useful structure that can be used in support. […]
Moody’s turns positive on reinsurance, with deepening alternative capital partnership
Rating agency Moody’s has shifted its outlook on the global reinsurance sector to positive citing the improvement in risk/return dynamics in the market and saying it anticipates continued strong profitability if major losses remain absent, while also saying property reinsurance rates are expected to remain elevated. At the same time, the rating agency highlights the […]
ILS fund index delivers strongest July performance ever
The broad benchmark index for insurance-linked securities (ILS) funds, the Eurekahedge ILS Advisers Index, has reported its strongest July performance on record, with ILS funds averaging 1.37% for the month. After which the year-to-date performance for this ILS fund performance index is now the third-highest on record at this stage of the year and it appears […]
Retro strategy differs for Big Four. Cyber cat bonds could be something they all agree on
While the retrocession strategies of Europe’s Big Four reinsurance companies may differ, the still relatively new retro option of sponsoring cyber catastrophe bonds may prove to be an area of commonality between them. It is AM Best that highlights the differences between the retrocession strategies of the four major European reinsurance giants, Hannover Re, Munich […]
Cambridge Associates ‘excited’ to add ILS capabilities with acquisition of SIGLO Capital Advisors
SIGLO Capital Advisors AG, a Swiss based alternative asset advisory specialist with an insurance-linked securities (ILS) practice, has reached an agreement to be acquired by Cambridge Associates, a global investment firm. Founded in 2010, SIGLO has around 40 asset management and advisory mandates on behalf of professional and institutional clients in Switzerland, and specialises in […]
Analyse the catastrophe bond maturity schedule, see when liquidity is coming
Catastrophe bond maturities are a significant source of liquidity and cash for the market, which is typically reinvested into new cat bond issues and as such the schedule of upcoming cat bond maturities is a key indicator for sponsors and broker-dealers, as well as cat bond investment fund managers. To help our readers understand what […]
Yes, cat bond fund returns are lower year-on-year, but there’s a good reason
A recent article in the mainstream financial press has caused some consternation among catastrophe bond fund managers and end-investors allocating to those strategies, as while it correctly highlighted that cat bond fund returns are down year-on-year in 2024, it failed to discuss the very good reason why 2023’s elevated returns were unlikely to be repeated. […]
Collateralized retrocession use up at global reinsurers, but retro cost put some buyers off: S&P
The use of collateralized retrocession limits has increased among the largest reinsurance companies as alternative capital continues to be a critical source of retro protection, but for some retro buyers the cost of coverage remains too high, S&P Global Ratings has said. In fact, across reinsurance companies analysed by S&P, their January 1st 2024 in-force […]