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Record levels of asset based lending shows businesses are ready for growth

GBAF-logoORIGINAL PUBLICATION HERE

The number of British businesses taking advantage of asset based finance to support their growth ambitions has increased, according to new figures that prove the popularity of this traditionally under-appreciated source of funding.

The latest research from industry body, the Asset Based Finance Association (ABFA), showed that the overall amount of funding provided to business through asset based finance rose by £260m in the past year to stand at £19.7 billion at the end of December 2015.

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Bermuda is Different

Bermuda_blueORIGINAL PUBLICATION by Ross Webber, CEO of BDA HERE

Some of the recent reporting on the ‘Panama Papers’ perpetuates the myth that all offshore financial centres are the same.

The fact is: Bermuda is different. While there may be businesses, service providers and lax regulatory environments around the world that enable illegal tax evasion, Bermuda is not one of them.

Bermuda is different. Bermuda has an extremely positive global reputation built on transparency, compliance and cooperation—these attributes have been differentiating hallmarks of the jurisdiction for decades.

IPE

TITLURILE DE VALOARE LEGATE DE ASIG-URARI: LUAND PIATA CU ASALT

IPEYOU CAN DOWNLOAD THIS ARTICLE HERE. ORIGINAL PUBLICATION IN ENGLISH HERE

Titlurile de valoare legate de asigurari castiga in popularitate ca si clasa pentru diversificarea activelor, dar care sunt strategiile disponibile, riscurile subiacente si costurile? Carlo Svaluto Moreolo clarifica:

PE SCURT 

  • Piata de ILS (insurance-linked securities/titluri de valoare legate de asigurari) este in crestere, cu societati de management al activelor traditionale lansand strategii si fonduri ILS.
  • O intreaga varietate de strategii lichide si nelichide este pusa la dispozitia investitorilor.
  • Clasa de active este in general decorelata fata de pietele largi, dar riscul poate ai mari variatii in functie de strategiile alese.
  • Si castigurile variaza, de la nivelul castigurilor fixe pana la niveluri mai costisitoare de tipul celor associate fondurilor de hedging.
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Solvency II equivalence finally official

logo-royalORIGINAL PUBLICATION HERE

It’s official: Bermuda has Solvency II third-country equivalency, as of today.

That means the European Union considers the standard of the island’s insurance regulation to be equivalent to its own.

In November last year, the European Commission recommended that Bermuda should be considered as in line with the tough new insurance rules being adopted across the 28-country bloc.

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Deloitte: Securing tomorrow – The ripple effect of insurance-linked securities in the reinsurance market

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TO ACCESS THE REPORT CLICK HERE

Discover a place where the reinsurance and capital markets converge, where investors can receive reasonable returns and diversify risk while the reinsurance market may get access to capital and insurers may get access to coverage at a lower cost. This place is the insurance-linked securities (ILS) market.

Insurance-linked securities are key for insurers and reinsurers to thrive

According to the National Association of Insurance Commissioners (NAIC), insurance-linked securities (ILS) are securities whose performances are linked to the possible occurrence of pre-specified insurance risks. This expansion of what was originally called catastrophic bonds may at first glance seem to deter investors due to its lower level of return. The reality though is that insurance-linked securities offers some interest rate protection and therefor has great appeal for investors from both life and property/casualty insurers.

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Solvency II reinsurance regulatory arbitrage. Good for ILS?

artemisORIGINAL PUBLICATION HERE

According to Fitch Ratings there may be a reinsurance regulatory arbitrage available that could benefit U.S. reinsurers, as cedants in Europe look to offload more of their risks, due to higher capital requirements under Solvency II, while reinsurers outside of the S2 framework could have an advantage.

Fitch’s report specifically discusses the fact that life reinsurance firms in the U.S., or other areas outside of Solvency II, may benefit from a wave of European re/insurers looking to reinsure risks such as longevity which attract high capital charges under S2.

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Solvency II ratio comparability hindered by diverging choices, says Moody’s

Bermuda Re logoORIGINAL PUBLICATION HERE

Solvency II ratio comparability is being hampered by insurers the fact that insurers can use one or more methods to enhance their ratios, according to Moody’s.

The US rating firm said in a new report that the use of internal models creates potential for inconsistent assumptions. Methods to enhance ratios that have been used so far, according to the firm, include transitional measures and third country equivalence.

IPE

Insurance-Linked Securities: Taking the market by storm

IPEORIGINAL PUBLICATION HERE

Insurance-linked securities are gaining popularity as a diversifying asset class, but what are the available strategies, underlying risks and costs? Carlo Svaluto Moreolo finds out

At a glance 

• The ILS marketplace is growing, with traditional asset managers launching ILS strategies and funds.
• A variety of liquid and illiquid strategies is available to investors.
• The asset class is generally decorrelated from the wider markets but the risk can vary greatly between strategies.
• Fees also vary, from active fixed-income levels to more costly hedge fund-like levels.

Opportunities in Solvency II

ORIGINAL PUBLICATION HERE

What kind of opportunities and challenges does Solvency II, the new regulatory regime for insurance companies, create for pension schemes? Carlo Svaluto Moreolo reports

Solvency II, the EU’s new regulatory regime that promises sweeping changes for the insurance industry, came into force at the start of this year. To comply with the new rules, insurance providers have to adapt their strategies and restructure their portfolios. This creates opportunities, as well as some challenges, for pension schemes.