Aon poll: 15% of US insurers say ILS / third-party capital feature in their 2025 plans
A recent poll of insurers in the United States, undertaken by broker Aon’s Capital Advisory division, found that within those carriers’ capital management plans for 2025, insurance-linked securities (ILS) and third-party reinsurance capital solutions are a significant feature. With the market having been challenging for a number of years, but insurers responding with a growth […]
Florida State Board set to increase ILS allocations at January renewals for FRS pension
Having previously indicated that it was cautious on reinsurance market conditions and undecided as to whether to add to its insurance-linked securities (ILS) investments for the January 2025 renewals, the Florida State Board of Administration now appears set to move forwards and increase its allocation to the sector. As we reported back in October, the Florida […]
Cat bond Index returns 40% in two years. Investor demand may tighten spreads: Twelve Capital
Specialist investment manager Twelve Capital has highlighted another stunning year for the catastrophe bond market, pointing out that the Swiss Re cat bond Index has returned 40% in just two years, but also sharing a note of caution that further spread tightening is possible with investor demand elevated for the asset class. Reviewing 2024, Twelve […]
Critical role of risk financing and insurance in disaster response: Bavandi, Gallagher Re
Antoine Bavandi, Global Head of Public Sector, Parametric & Climate Resilience Solutions at Gallagher Re highlighted the growing recognition of disaster risk financing and insurance in disaster response during his summary of key takeaways from COP 29 in Baku. He noted that effective private-sector strategies include risk pooling, public-private partnerships, parametric insurance, and catastrophe bonds. […]
Innovation, models, policy standards can drive cyber cat bond & ILS growth: Geneva Association
Further innovation in risk modelling and policy standardisation can help the cyber insurance and reinsurance community unlock more support from the capital markets through catastrophe bond and insurance-linked securities (ILS) markets, the Geneva Association has explained. A new Geneva Association report states that, “Financial innovations like cyber Cat bonds will help address the cyber protection […]
Investor willingness to address structural risks positive for collateralized reinsurance: Artex
Investor optimism remains strong for catastrophe bonds and reinsurance sidecars, but when it comes to collateralized reinsurance that optimism still lags, but institutional investors are positively working to address issues that have made allocating fresh capital more of a challenge in private ILS and collateralized reinsurance, according to Artex. Overall, the Artex View on alternative […]
Mapfre Re secures debut Recoletos Re cat bond at upsized $125m and reduced pricing
Mapfre Re has now successfully priced its debut catastrophe bond, with the Recoletos Re DAC (Series 2024-1) issuance now secured to provide the reinsurance company with an upsized $125 million of retrocession, with the notes priced below the initial guidance range that had been offered. Spanish global reinsurance company Mapfre Re ventured into the catastrophe bond market for […]
Brazil authorises first ILS structure Andrina, sponsored by reinsurer IRB Re
The Brazilian insurance regulator SUSEP has now authorised the first insurance-linked securities (ILS) structure in the country, with Andrina sponsored by IRB Re and now approved to issue Letra de Risco de Seguro (Insurance Risk Letters), which is the name for the insurance-linked notes a Brazilian ILS structure can issue to be sold to investors. […]
IRB Re gets first ILS structure in Brazil approved by regulator
The Brazilian insurance regulator, Superintendence of Private Insurance (SUSEP), has approved the country’s first insurance-linked securities (ILS) structure, Andrina, sponsored by IRB Re. The authorisation allows Andrina Sociedade Seguradora de Propósito Específico, or Andrina Special Purpose Insurance Company, to issue Letra de Risco de Seguro (Insurance Risk Letters), the designated term for insurance-linked notes in […]
Brazil aligning ILS approach with global standards to transform catastrophe coverage
Speaking at a Fitch Ratings event on the development of insurance-linked securities (ILS) in Brazil, Rodrigo Botti, former CFO of IRB and former CEO of Terra Brasis, emphasised a domestic market-first approach, with no intention of competing with other established ILS hubs. According to Botti, the ILS approach taken by Brazil focuses on aligning regulations […]