Cat bond spreads widened in the secondary market as H1 drew to a close: Aon
Spreads in the secondary market for catastrophe bonds began to widen towards the levels seen for primary cat bond transactions as the first-half of the year drew to a close, broker-dealer Aon Securities has said. Commenting on secondary cat bond market conditions through the second-quarter of 2022, Aon Securities, the investment banking and broker-dealer unit […]
Catastrophe bond market positioned for next stage of growth: Swiss Re
The trend of increased new issuance volume in catastrophe bonds is expected to continue, with positive growth of the cat bond market expected as a result, according to Swiss Re Capital Markets. The capital markets and broker-dealer entity of the Swiss Re reinsurance group expects that insurance-linked securities (ILS) in catastrophe bond form will continue […]
ILS funds free COVID trapped capital through commutations: AM Best
Insurance-linked securities (ILS) fund managers have been working to free trapped capital related to possible COVID pandemic related losses in European reinsurance contracts, with commutations being pursued, AM Best has reported. In a wide-ranging ILS market report from the rating agency, one of the most interesting insights is that AM Best believes efforts to release […]
Cyber ILS market growth to be slow, as investors still hesitant: S&P
Many insurance-linked securities (ILS) investors remain hesitant about allocating capital to cyber insurance and reinsurance risks, which leads rating agency S&P Global to suggest growth of a cyber ILS market will likely be slow in the short to medium term. With market conditions for insurance-linked securities (ILS) investors seen as improving after several difficult years […]
Era of catastrophe-focused traditional reinsurers may be over: AM Best
The era of catastrophe-focused traditional reinsurers appears to be over, rating agency AM Best announced today, as the pulling-back continues in some quarters, while the addition of more diversifying lines of business accelerates among once cat-specialist US and Bermuda based reinsurance firms. AM Best explained in a recent report that the catastrophe exposed regions of […]
ILS industry has tools to tame inflation: Lohmann, Schroders Capital ILS
While the insurance-linked securities (ILS) industry cannot avoid inflationary effects completely, the structures utilised have some tools embedded that allow ILS managers to tame the effects of inflation on their portfolios, according to Dirk Lohmann, Chairman, Schroders Capital ILS. In a recent paper, Lohmann gives an insightful overview of the threats inflation can pose to […]
Traditional reinsurance capital to shrink, ILS to grow in 2022: AM Best & GC
According to the latest estimate and forecast for dedicated reinsurance capital from rating agency AM Best and broker Guy Carpenter, overall reinsurance market dedicated capital is expected to shrink, as traditional capacity falls, but ILS or third-party capital rises. While reinsurance capital remains plentiful, according to AM Best’s latest market report, the current forecast is […]
Visualising higher catastrophe bond pricing, multiples & spreads
In recent months, if you’re interested in insurance-linked securities (ILS) or active in the ILS marketplace, you could not have missed the widely discussed issues of spread widening seen in catastrophe bonds, or the hardening of reinsurance pricing and how that spills over to ILS rates and returns. Cat bond spreads began widening in earnest […]
Swiss Re launches cat bond investment adviser, with Guatteri as CEO
Global reinsurance firm Swiss Re has set up a new insurance-linked securities (ILS) venture, launching an SEC registered investment adviser today named Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC), which will have a focus on catastrophe bond investment management. The move comes as the reinsurance giant continues to build-out and formalise its capabilities in managing […]
Cat bond market resilient through macroeconomic headwinds: Aon
Despite the significant macroeconomic headwinds that posed a threat to investor capital and impacted most financial markets through the second-quarter of 2022, the catastrophe bond market was resilient by comparison, with the period seeing its third-highest volume of new cat bond issuance. This is according to Aon Securities, the capital markets, catastrophe bond and insurance-linked […]