ILS offers reliable & consistent diversification potential: PIMCO
The steady, positive returns delivered by insurance-linked securities (ILS) during times of broader financial market downturns, shows that the asset class offers reliable and consistent diversification potential for investors, according to PIMCO. In a recent report, PIMCO (Pacific Investment Management Company LLC), which is owned by insurance giant Allianz, explores the case for a dedicated […]
Access to third-party capital & ILS positive for London market: AM Best
Rating agency AM Best has maintained its outlook for the London insurance and reinsurance market at Stable, with improving access to third-party capital one of the key drivers. AM Best believes that access to third-party reinsurance capital and the ability to more readily utilise insurance-linked securities (ILS) are positives for the London market, which should […]
City National Rochdale ILW fund beats cat bond benchmark
The industry-loss warranty (ILW) focused mutual insurance-linked securities (ILS) fund strategy offered by investment adviser City National Rochdale (CNR) delivered a 5.95% annual return to January 31st 2022, beating its main catastrophe bond benchmark. The positive net return of 5.95% for the year to January 31st 2022 was a little lower than the prior year, […]
Cat bond spreads widening as market experiences mismatch
The catastrophe bond market is seeing spreads widen for practically all new issuances, with market sources telling us about a mismatch, on multiple counts, that has the effect of driving prices higher, and is also sending broader signals on the potential trajectory for catastrophe reinsurance rates at the mid-year renewals. During the first-quarter of 2022, […]
Parametric risk transfer interest drives innovation, but consolidation possible
Rising interest in parametric insurance and risk transfer has resulted in an influx of investor capital into the space, the development of new MGA’s and capacity, as well as new technology platforms. While this is driving innovation in the parametric risk transfer space, the market is only so big for parametric products at the moment […]
Arkansas Teacher pension fund ILS allocation drops to $220m
The Arkansas Teacher Retirement System, a state pension fund that provides retirement solutions to Arkansas education professionals, has seen its allocation to insurance-linked securities (ILS) shrink to roughly 1% of the fund, falling to $220 million. That’s down from a high of almost $290 million at the end of 2019 and $267 million at the […]
Divergent execution a sign of a mature ILS market: Swiss Re
Catastrophe bond and insurance-linked securities (ILS) market execution through 2021 was not uniform, which global reinsurance firm Swiss Re highlights is a sign of the market becoming increasingly mature. As you’d expect, the catastrophe bond market in particular is maturing fast and the way deals execute, as well as how they price both in primary […]
Cat bond momentum has carried over into 2022
Market momentum for catastrophe bonds continued through the first quarter after last year’s record new issuance. More than $3 billion of coverage has been issued in the 144A cat bond sectors since the beginning of the year, said Philipp Kusche, New York-based global head of ILS and capital solutions for TigerRisk Partners Inc. That follows […]
USAA targets $375m+ Residential Re 2022-1 aggregate cat bond
USAA, the U.S. primary mutual insurer, is sponsoring a $375 million plus aggregate catastrophe bond transaction, with a Residential Reinsurance 2022 Limited (Series 2022-1) deal being marketed to cat bond funds and investors. This is USAA’s regular May sponsorship of an annual aggregate catastrophe bond, as the insurer continues to place the capital markets at the […]
Catastrophe bond market hits new high on busy start to 2022: Report
The outstanding market for catastrophe bonds and related insurance-linked securities (ILS) reached a new all-time high at the end of the first-quarter of 2022, as a busy start to the year took Artemis’ measure of the sector to $37.5 billion. This is according to the latest quarterly report on the catastrophe bond and related insurance-linked securities […]