VP Bank says ILS has “good prospects”, more overweight ILS than other assets
Liechtenstein-based private bank VP Bank AG has told its clients it currently sees “good prospects” for investing into insurance-linked securities (ILS), with catastrophe bonds seen as a positive diversifying addition to portfolios. VP Bank undertakes asset management and investment consultant activities for private and institutional investors, recommending opportunities including funds, or managing portfolios on their […]
Global Insurance-Linked Securities Market Outlook
The Insurance-Linked Securities (ILS) market ended another year on a high note as the annual new issuance record was broken once again. This milestone was achieved in spite of a challenging year of catastrophe losses and with most market participants working from home. The ILS market continues to demonstrate its resilience with bonds issued in […]
Crypto crash may push re/insurers to add new exclusions
The cryptocurrency price crash could accelerate the process of insurers rewriting policies to reduce potential exposure, according to the law firm RPC. The company says insurers are likely to review or amend policy wordings to ensure they are not indirectly insuring losses arising from the activity of clients who may have exposure to the crypto market. […]
No oversupply of ILS capital expected, as returns come into focus: JPM
There is unlikely to be an oversupply of alternative reinsurance capital or insurance-linked securities (ILS) capacity in the near-term, as the ILS segment of the re/insurance industry focuses on delivering returns to its investors, according to analysts at J.P. Morgan. In a new report, equity analysts from investment bank J.P. Morgan explain that they regularly […]
Swiss ILS fund ESG initiative can drive desired change: Piemonte, BKC
The environmental, social and governance (ESG) transparency initiative being undertaken by a leading group of Swiss-based insurance-linked securities (ILS) investment fund managers, has the potential to drive the desired change investors such as the Bank für Kirche und Caritas have been looking for, according to Tommy Piemonte. Piemonte is the Head of Sustainable Investment Research at […]
Fitch Withdraws 3 Belarusian Insurers’ Ratings
Fitch Ratings – London – 13 Jul 2022: Fitch Ratings has withdrawn three Belarusian insurers’ Insurer Financial Strength (IFS) Ratings. A full list of rating actions is below. Fitch is withdrawing the IFS Ratings, as the agency no longer has access to sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings […]
Disaster Risk Financing could help to mitigate climate risk in Africa
Only three percent of losses caused by drought, floods and tropical cyclones have been insured on the African continent. This emerged at a recent DZ BANK Capital Markets Conference held in Berlin. Insured losses on the African continent are close to 97 percent, which means, at best, only three percent of losses caused by drought, floods […]
Cat bonds on-track to match records in 2022, fresh capital expected: Aon
Mid-way through 2022, the market for catastrophe bonds is on-track to match the record levels of issuance seen in 2021, according to insurance and reinsurance broker Aon. Demand for catastrophe bonds from established insurance-linked securities (ILS) funds and investors continues to outstrip supply in the market in recent weeks, Aon’s Reinsurance Solutions division explained. “Insurers […]
Novel cat bonds on the horizon: Brad Adderley, Appleby
On the back of a robust opening quarter, catastrophe bond issuance remained strong in the second-quarter of 2022, and with interest from new sponsors with novel transactions, growth could be on the horizon, according to Brad Adderley. “We have done a fair amount of cat bonds in Q2, and we have not had any transactions […]
“Demand for catastrophe bonds outpacing industry’s ability to meet them” – Aon
Aon’s latest Reinsurance Market Dynamics: June and July Reinsurance Renewals says that the current demand for catastrophe bonds is outpacing the ability of the industry to supply them. According to the report, the current situation has arisen because insurers and reinsurers have turned increasingly to alternative capital markets to supplement traditional reinsurance and maximise placements in a […]