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 […]
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 […]
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 […]
Cat bond market finds equilibrium as spreads stabilise higher: Plenum
Spreads in the catastrophe bond market, in terms of both new primary cat bond issuance and secondary marks, appear to have stabilised, signalling the market finding a new equilibrium at higher premiums, Plenum Investments has said. Zurich-headquartered catastrophe bond investment manager Plenum believes that spreads have now stabilised at their new higher levels. Recently issued […]
2023 an opportunity to invest in ILS on attractive historic yields: Cambridge Associates
Independent investment management giant Cambridge Associates LLC is bullish on the outlook for insurance-linked securities (ILS) investing in 2023, believing the higher yields on offer provide a good return opportunity relative to risk. But they caution that investors should review the ILS asset class on a regular basis. It’s sound advice from the investment giant […]
Risk adjusted cat bond yields seven times higher than 2016: Twelve Capital
Specialist insurance-linked securities (ILS) and reinsurance investment manager Twelve Capital believes the catastrophe bond investment opportunity to be particularly compelling for 2023. Higher pricing of reinsurance and retrocession, alongside stricter documentation of coverage in cat bonds, means the sector has about the highest return potential in its history. These factors “Make the current environment an […]
Risk adjusted cat bond yields seven times higher than 2016: Twelve Capital
Specialist insurance-linked securities (ILS) and reinsurance investment manager Twelve Capital believes the catastrophe bond investment opportunity to be particularly compelling for 2023. Higher pricing of reinsurance and retrocession, alongside stricter documentation of coverage in cat bonds, means the sector has about the highest return potential in its history. These factors “Make the current environment an […]