Collateral can be held too long for US wind ILW’s, study suggests
With the key January reinsurance renewals having been challenging and characterised by reduced capacity and higher pricing, the focus can often turn to buying hedges such as industry-loss warranties (ILW’s), but a new study highlights some issues investors should be aware of. The study by Kriesch Advisors, mandated by Swiss-headquartered capital markets risk transfer focused […]
Industry loss cat bonds show significant relative value: Twelve Capital
Given spread widening has been seen to be more considerable with index-linked, or industry loss triggered, catastrophe bonds, compared to indemnity deals, investment manager Twelve Capital says there is significant relative value in them and as a result it advises being overweight to the index trigger cat bond category. Twelve Capital, the Zurich headquartered investment […]
Industry loss cat bonds show significant relative value: Twelve Capital
Given spread widening has been seen to be more considerable with index-linked, or industry loss triggered, catastrophe bonds, compared to indemnity deals, investment manager Twelve Capital says there is significant relative value in them and as a result it advises being overweight to the index trigger cat bond category. Twelve Capital, the Zurich headquartered investment […]
Visualising higher catastrophe bond spreads & pricing
With reinsurance rates having hardened considerably, pricing in the catastrophe bond and broader insurance-linked securities (ILS) market has followed suit. In fact, the new reinsurance and retrocession pricing regime that has been installed through the January 1 2023 renewal season really became visible first in the catastrophe bond market, as Artemis’ data shows. Today, we […]
Visualising higher catastrophe bond spreads & pricing
With reinsurance rates having hardened considerably, pricing in the catastrophe bond and broader insurance-linked securities (ILS) market has followed suit. In fact, the new reinsurance and retrocession pricing regime that has been installed through the January 1 2023 renewal season really became visible first in the catastrophe bond market, as Artemis’ data shows. Today, we […]
PICC P&C’s Great Wall Re cat bond listed on Bermuda Stock Exchange
The Bermuda Stock Exchange (BSX) has become the listing home for another Hong Kong issued catastrophe bond, with the notes from Chinese domestic insurer PICC Property and Casualty Company Limited’s $32.5 million Great Wall Re Limited cat bond now listed on the exchange. The Bermuda Stock Exchange (BSX) continues to be the listing venue of choice […]
ILS demand to be elevated throughout 2023: Aon
Analysts at Aon have said they expect demand for all forms of alternative capital to remain elevated throughout 2023 as insurers and reinsurers look to mitigate both macro-economic and reinsurance market challenges. In a new report on January reinsurance market dynamics, the broker noted that ILS capital has become an “essential source of capacity” for […]
ILS investment opportunity “never been so interesting” – VP Bank
VP Bank AG, a Liechtenstein-based private bank and asset manager, has said that the insurance-linked securities (ILS) investment opportunity has “never been so interesting”, with the highest yields in over a decade now possible, and further revaluation gains in hurricane Ian exposed catastrophe bonds expected. All of which leads to the bank and asset manager […]
ILS “poised for strong market growth” on returns & diversification: Aon
Elevated, near-record returns and still-evident asset class diversification benefits, leave insurance-linked securities (ILS) and alternative capital in reinsurance poised for strong growth, according to Aon’s Reinsurance Solutions. A supply-demand imbalance that became evident in the catastrophe bond market in 2022, alongside the reaction to increased catastrophe activity over the last five years, has “pushed the […]
Capital entering reinsurance in 2023 will be rewarded: Aon’s Monaghan
New capital that enters the reinsurance market in 2023 is expected to be rewarded, thanks to strong demand for protection and the attractive terms that capital can be deployed at, according to Joe Monaghan, Global Growth Leader at Aon’s Reinsurance Solutions. After a “turbulent” January reinsurance renewal season, that Monaghan says came to a “pragmatic” […]