Chile seeks $150m parametric quake cat bond via the World Bank’s IBRD
The Republic of Chile is aiming to secure $150 million of parametric earthquake disaster insurance protection through a new IBRD – Chile 2023 transaction that is being issued by the World Bank’s multilateral development bank, the International Bank for Reconstruction and Development (IBRD). The IBRD – Chile 2023 catastrophe bond is the first issuance to come to […]
ILS funds can and should manage trapped collateral to eliminate non-performing assets: Replexus
Notable in the wake of Hurricane Irma in 2017, trapped collateral is an ongoing issue for the insurance-linked securities (ILS) space. But through tools available within the capital markets, funds can manage extensions and put an end to non-performing assets. This is the view of Cedric Edmonds, founder of Replexus, an independent marketplace for insurance […]
Swiss Re sidecar & ILS fund AuM rises 29% in 2022, alt capital fees rise 36%
Global reinsurance company Swiss Re grew its collateralized reinsurance sidecar and insurance-linked securities (ILS) fund assets under management by 29% in 2022, lifting the third-party investor total to $2.9 billion. At the same time, Swiss Re has also disclosed this morning that its Alternative Capital Partners business delivered 36% more in annual fee income earned […]
Riverstone gets $305m multi-year collateralised reinsurance funded via JP Morgan
In a major deal that is similarly structured to the landmark Lloyd’s Central Fund reinsurance arrangement from 2021, legacy acquisition focused Lloyd’s specialist underwriter RiverStone International, has secured $305 million of multi-year collateralised reinsurance, with funding led by investment bank JP Morgan and transacted via a White Rock cell structure. Riverstone is a significant player […]
Total insured losses from Turkey Earthquake estimated $2.4 bn, property losses $20 bn
Total property losses from the M7.8 and M7.5 earthquakes are expected to be close to $20 billion, with the M7.8 earthquake accounting for the bulk of those losses. According to the high-resolution KCC Turkey Earthquake Reference Model, total insured losses are estimated to be $2.4 billion. The loss figures do not include losses within Syria. […]
Reinsurers are pulling back cat reinsurance coverage, but cat bonds & ILS instruments may help
Following multiple years of large catastrophe losses, reinsurers are raising prices and pulling back cat reinsurance coverage. This puts the cat bond market in a favourable position to provide the large amount of risk capital needed to cover the most damaging global catastrophes, according to a report from DBRS Morningstar. It expects a moderate decrease in cat […]
Diversifying assets in focus as investor fear of volatility to persist
Investors around the world continue to fear a return of the stocks and bonds volatility seen in 2022 and as a result diversifying and uncorrelated assets are increasingly being sought out, which is positive for the insurance-linked securities (ILS) asset class. In a recent Reuters article, a range of institutional investors explained how they are […]
ILS – a nascent asset class and exceptional opportunity: Conyers, Neuberger Berman
The insurance-linked securities (ILS) market is undergoing a “dramatic repricing”, leading to a situation that Alex Conyers of Neuberger Berman explains as “an exceptional opportunity for investors looking for non-correlated returns.” “Few asset classes can offer sizable, floating rate returns with no correlation to broader financial markets,” Conyers, a Senior Vice President in the Neuberger […]
Worst Natural Disasters in 2022. Global Natural Catastrophe Review
Climate change is taking an increasing toll. The natural disaster figures for 2022 are dominated by events that are more intense or are occurring more frequently. In some cases, both trends apply. Contents: 2022 natural disasters in figures What were the worst natural disasters in 2022? Regional overview Hurricane Ian driving disaster losses in USA […]
UCITS cat bond funds add $200m to AuM in January, near $9bn as a group
Catastrophe bonds in the UCITS format have continued to add assets under management (AuM) at the start of 2023, with a further almost $200 million gain in January, taking the combined assets of those cat bond funds tracked to almost $9 billion. The overall assets under management (AuM) of the main UCITS catastrophe bond funds has been […]