ILS market growth comes when risk transfer needs are greatest: Pennay, Aon Securities
The surge in catastrophe bond market issuance and resulting insurance-linked securities (ILS) market growth over the last year, came at the right time for the insurance and reinsurance market, meeting their needs for risk transfer, according to Richard Pennay of Aon Securities. Pennay, the CEO of Insurance-Linked Securities at broker Aon’s capital markets and ILS […]
Strong alternative capital supply growth expected in 2025 for cat bonds and ILS: Fitch
Unless there are “substantial” losses to insurance-linked securities (ILS) from catastrophe events in the second-half of 2024, Fitch Ratings said it expects “continued strong supply growth in the alternative reinsurance capital market into 2025.” Fitch Ratings said that returns in catastrophe bonds and other insurance-linked securities (ILS) remain attractive, which has helped to elevate and […]
Trapped capital decline means ILS growth is stronger than you think: AM Best
Over the last couple of years the amount of capital trapped in collateralized reinsurance, retrocession and other insurance-linked securities (ILS) has declined significantly, which makes for a much larger and more impactful ILS capital market than you might think, AM Best rightly points out. ILS managers have been successful in releasing a lot of capital […]
Institutional investors to increase alternatives allocations by 10% CAGR to 2032: Bain & Co
Analysis from global consultancy Bain & Company suggests that institutional investors will increase their allocation to alternative asset classes by a 10% CAGR from 2022 to 2032, to reach at least $60 trillion. With profitability from investments in public markets having fallen by half, Bain & Company’s analysis states that asset managers are increasingly being […]
Toa Re Europe’s $25m Silver Crane cat bond triggered in full by Turkey quake
Toa Re Europe, the Switzerland-based European reinsurance arm of Japanese group Toa Reinsurance Company Ltd., has benefited from a full payout under its $25 million Silver Crane private catastrophe bond transaction, after the notes were triggered by industry losses from the Turkey earthquake event from early 2023, Artemis has learned. Toa Re Europe sponsored the private […]
ILS capacity recovering in sidecars, ILW’s, collateralized reinsurance: AM Best
Capacity is increasing across the range of private insurance-linked securities (ILS) products, as fund managers and reinsurers have benefited from new inflows to structures and investors look to access the strong reinsurance market returns that are available, rating agency AM Best has said. But a single year of stellar returns, such as was seen across […]
Hannover Re’s cat bond fronting hits record level, collateralised ILS activity expands in H1 2024
Global reinsurer Hannover Re has seen continued success in its business servicing and facilitating transactions in the collateralised reinsurance and insurance-linked securities (ILS) market in the first-half of 2024, with it notably beating its own full-year record for catastrophe bond limit fronted for already this year. In recent years, Hannover Re has become one of […]
Third-party capital in reinsurance could grow 10% to $110bn in 2024: AM Best, GC
Third-party capital in reinsurance, including that from catastrophe bonds and insurance-linked securities (ILS), could grow by as much as 10% in 2024, with AM Best and broker Guy Carpenter projecting it will be at $105 billion to as high as $110 billion by year-end. Industry capitalisation remains high, but still rating agency AM Best believes […]
ILS market set records in H1’24, remains an attractive relative value option: Swiss Re
After a record 2023, the insurance-linked securities (ILS) market again set records in the first half of 2024, with strong catastrophe bond issuance on the back of robust demand from investors, as the secondary market experienced record high trading volumes, according to reinsurance giant Swiss Re. The latest ILS Market Insights report from Swiss Re […]
Nat cat gap expands 5.2% to $385bn, but protection more available: Swiss Re
The global natural catastrophe protection gap widened again in 2023, rising 5.2% to US $385 billion in premium equivalent terms, but at the same time Swiss Re reports that there are signs of more protection being available, which over time should see more losses covered by insurance and reinsurance. Swiss Re’s Institute sigma research team […]
