ILS funds deliver 3.51% for 2020, highest Index return since 2016

The average return of the insurance-linked securities (ILS) fund market reached 3.51% for full-year 2020, which is the highest figure since 2016 measured by the Eurekahedge ILS Advisers Index. Results are widely spread across the ILS fund market though, with some ILS funds performing much more strongly than others throughout the last year and with…

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COVID-19 industry loss estimate lowered to $40bn – $60bn by Berenberg

Analysts at investment bank Berenberg have refined their insurance and reinsurance industry loss estimate for the COVID-19 pandemic, lowering it to an expected range of $40 billion to $60 billion of losses. Previously, the Berenberg equity analyst team had forecast that industry losses would come in below where some had expected the insurance and reinsurance…

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Reinsurance renewals suggest “a real repricing of risk” in 2021: RBC

The outcome of the January 2021 reinsurance renewals and expectations for the rest of this year suggest “a real repricing of risk” is underway, which may now continue into 2022, according to analysts at RBC Capital Markets. The analysts see January’s renewal pricing trends as indicative of reinsurers and of course insurance-linked securities (ILS) funds…

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Catastrophe bond backed EU emergency healthcare fund proposed

A new study has called for the creation of an Emergency Health Financing Facility (EHFF) for the European Union (EU) healthcare sector, with the securitization of health emergency risks in the form of catastrophe bonds seen as a viable funding solution. The research study, undertaken and published by Professor David Veredas, Professor Simon Ashby and…

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Marrikel rebrands as Re Square, pivots to offer reinsurance auction tech

Marrikel, the company that launched in mid-2020 with a product offering of a full reinsurance broking platform, has rebranded itself as Re Square and pivoted to offer just reinsurance auction technology, as an option alongside its full platform, recognising many brokers want to retain control of their own transaction flows. The move puts Re Square…

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MGIC targets its biggest mortgage ILS, with $399m Home Re 2021-1

MGIC Investment Corporation is back in the capital markets with what will be its third sponsorship of a mortgage insurance-linked securities (ILS) issuance, as it seeks roughly $399 million of collateralized mortgage reinsurance with the Home Re 2021-1 Ltd. issuance. MGIC Investment Corporation first entered the mortgage insurance-linked securities (ILS) market in 2018, securing a …

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Some ILS funds continue to set small COVID business interruption reserves

A number of insurance-linked securities (ILS) funds have continued to report small increases in losses and reserves set related to business interruption claims from the Covid-19 pandemic, we understand, which continued to weigh on results over the last two months. Clarity over the extent of business interruption losses that will be faced by the reinsurance…

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