Insurance

With the traditional reinsurance industry and insurance-linked securities (ILS) market working hard to identify any routes through which unexpected claims from the Covid-19 coronavirus pandemic could leak, it’s perhaps worth looking at one obvious area of uncertainty, the growing in prevalence “other perils” category and similarly worded contract terms. For us, with our coverage focused…

The Horseshoe managed private catastrophe bond and insurance-linked securities (ILS) issuance and risk transformation vehicle Eclipse Re Ltd. has completed a second issuance of 2020, a $20 million Eclipse Re Ltd. (Series 2020-02A) transaction that came to market around the April reinsurance renewal. Horseshoe’s Eclipse Re was one of the most prolific private cat bond…

The fact reinsurance prices have risen again at the January and April renewals, especially in peak catastrophe exposed zones, along with the recently demonstrated low-correlation to coronavirus financial market declines, suggests that the improved return potential of the ILS asset class will drive resurgent investor interest. We’ve been saying this for a while now, that…

The ongoing Covid-19 pandemic is expected to have a limited impact on the life insurance-linked securities (ILS) sector, and despite the outlook for life insurance markets being downgraded, the future looks positive for life ILS. This is according to Luca Tres, Partner at Securis Investment Partners, who in a recent interview with Artemis, discussed the…

The main insurers that sponsor mortgage insurance-linked securities (ILS), or mortgage insurance-linked notes (ILN), as a way to secure reinsurance from the capital markets to protect their mortgage insurance books, have all had their ratings placed on a negative watch by S&P. S&P Global Ratings said that is has revised its outlook to negative from…

A number of countries have benefited from disbursements under World Bank provided catastrophe contingent lines of credit after the Covid-19 coronavirus pandemic triggered their Catastrophe-Deferred Drawdown Options (CAT-DDO’s). The Catastrophe-Deferred Drawdown Option (CAT-DDO) is a financing instrument that acts a little like a parametric catastrophe bond, in that they provide a source of capital contingent…

Third-party reinsurance capital from the insurance-linked securities (ILS) market and alternative capital vehicles remains a threat to the stable outlook for the global reinsurance market, rating agency A.M. Best believes. While the rating agency highlights the fact that in reinsurance “traditional capacity has become more closely aligned with third-party capital,” it still sees the potential…

Insurance-linked securities (ILS) and catastrophe bond investors who cashed-out their holdings during March, as the world’s financial markets declined in the face of the Covid-19 coronavirus threat, are likely to return and may bring more investors with them, Lane Financial LLC believes. As we’ve been documenting, in recent weeks some ILS funds have been receiving…

A regional catastrophe bond market for the Asia-Pacific region has become a focus of the business focused arm of the Asia-Pacific Economic Cooperation (APEC). APEC has long been a supporter of the use of insurance-linked securities (ILS), such as catastrophe bonds for disaster risk financing using the capital markets as a source of reinsurance, and…