Family Offices Are Boosting Allocations to Alts in 2024, KKR Says
While some institutional investors sit on the sidelines, family offices plan to significantly grow their allocations to alternative investments this year, according to a report by KKR. Family offices are investing to grow wealth with future generations in mind — 93 percent said this was a focus for their portfolios, according to a KKR survey […]
ARC gets US Gov backing to expand parametric insurance capacity in Africa
African Risk Capacity Limited (ARC Ltd.), the financial affiliate and underwriting entity of the African Risk Capacity (ARC) Group, has entered into a landmark US $11.7 million partnership with the United States Government, to help expand access to parametric insurance and increase the size of its risk pool. The goal is to further safeguard food […]
Family offices leaning into insurance for diversification. So is KKR: McVey
Family office investors are increasingly leaning into allocations to the insurance sector as they seek out sources of diversification and relatively uncorrelated returns, something that investment giant KKR has been doing itself, according to the firm’s Henry McVey. For KKR, insurance is an area of investment designed to expand its business from a strategic standpoint, […]
64% of cat bond tranches issued in Q4 ’23 upsized while marketing
During the fourth quarter of 2023, the majority of tranches of cat bond notes closed above their initial target size, resulting in an average increase of 27% for the period, according to Artemis’ data. The Artemis Q4 and full year 2023 catastrophe bond and related insurance-linked securities (ILS) report shows that this is a stark contrast […]
The World Bank to scale up use of reinsurance and risk transfer for disasters
The World Bank has revealed that its expanded Crisis Preparedness and Response Toolkit has a focus on offering increased protection against large-scale disasters, enabling the mobilisation of private capital and the ability to transfer the risks of high-intensity but low-frequency disasters to reinsurers and the capital markets. Building on existing tools like catastrophe bonds, the […]
Florida State Board allocated $398m to ILS for 1/1, across Aeolus, Pillar, RenRe
The Florida State Board of Administration, which manages the states massive roughly $180 billion Florida Retirement System Pension Plan, has allocated $398 million to reinsurance and retrocession opportunities across three ILS managers in time for the January renewals. The Florida State Board of Administration was already allocated to insurance-linked securities (ILS), for the Florida Retirement […]
Cyber cat bonds issued so far “highly correlated” with each other: Plenum
While the catastrophe bond market cheered the emergence of cyber cat bonds in 2023, fund manager Plenum Investments has offered a note of caution, saying that as they all cover cyber loss events that would be in the far tail, they are all correlated with little diversification on offer between them. As a result, Plenum […]
Augment Risk launches dedicated insurance-linked securities (ILS) division
Risk capital and reinsurance solutions broker Augment Risk has launched a dedicated insurance-linked securities (ILS) offering, as it looks to break into the market for matching insurance risk with institutional capital. The company has hired Thad Hall to lead this new offering as Partner, Head of ILS Solutions at Augment Risk. Hall was most recently […]
Cat bond funds buck the UCITS trend, growing as sector saw $38bn outflows: Kepler
Catastrophe bond funds were a bright spot in the alternative UCITS investment fund space in 2023, as cat bond funds expanded strongly at a time when the wider UCITS segment experienced approximately $38 billion in outflows, according to Kepler Absolute Hedge. As we reported back in January, our tracker of UCITS catastrophe bond fund assets […]
Turkey earthquakes industry loss estimate raised 26% to US $6.2bn
The insurance and reinsurance market industry loss estimate for the Kahramanmaras Earthquake Sequence that struck Turkey in February 2023 has been lifted by a significant 26%, by PERILS, to reach TRY 117 billion, which would have been US $6.2 billion at exchange rates when the disaster struck. The increase brings PERILS industry loss more into […]