Cat bonds & related ILS reach new $17bn annual issuance record
Catastrophe bond and related insurance-linked securities (ILS) new issuance has now reached $17 billion in 2021, setting a new annual record for the total tracked by our Artemis Deal Directory. It’s also notable that issuance of new Rule 144A property catastrophe bonds has surpassed $10 billion now for the second year running and only the second time in the cat bond market’s history. In fact, property catastrophe bond issuance has already reached almost $10.4 billion in
Reinsurance: Innovative ILS addresses emerging needs
The past two years have seen innovative issuance of Insurance-linked securities (ILS), addressing different emerging needs, notes S&P Global Ratings (S&P) in a report. These needs include: The increase in insured exposure (e.g., properties exposed to typhoon risk in China); The protection gap to address the underserved following events such as the earthquake in Haiti; Additional investment around risk mitigation strategies to navigate new forms of volatility that can be protected against with parametric triggers,
FT: Catastrophe bonds storm into mainstream as climate threat grows
To read the original Financial Times article click HERE
ILS increasingly important to reinsurers: S&P
Reinsurers are increasingly turning to third-party capital to support their retrocession needs amid rising catastrophe losses, a new report has shown. According to S&P Global Ratings, nearly 15 percent of total reinsurance capital is sourced through insurance-linked securities (ILS) issuances, while the share is increasing significantly within the retrocession market. “In 2021, they ceded about 50 percent of their exposures at a 1-in-250 return period through collateralised instruments, such as insurance-linked securities (ILS),” said S&P’s
SBAI to publish toolkit on implementing ESG in ILS strategies
The Standards Board for Alternative Investments (SBAI) has this morning announced the launch of its first toolkits targeted at asset managers and allocators to help them with the practical implementation of responsible investment across certain alternative investment strategies and asset classes. The SBAI has been ramping up its focus on environmental, social and governance (ESG) alongside responsible investing and these guides are the latest step to try and bring some standardisation around adoption of these
Reinsurers Increasingly Using ILS to Transfer Risks
Reinsurers are increasingly relying on third-party capital to support their retrocession needs, in which they transfer risks they have assumed to other counterparties. According to a report from S&P Global Ratings, reinsurers have ceded about 50% of their exposures at a 1-in-250 return period through collateralized instruments, such as insurance-linked securities (ILS) in 2021. About 15% of total reinsurance capital is sourced through ILS issuances, while the share is “increasing significantly” within the retrocession market,
Cat bond & related ILS issuance nears annual record, now over $16.1bn
Catastrophe bond and insurance-linked securities (ILS) new issuance continues apace in 2021, with the total issued and tracked by Artemis so far this year now above $16.1 billion, meaning that a new annual issuance record is expected to be reached imminently. Issuance of new catastrophe bonds and the other related insurance-linked securities (ILS) that we track here at Artemis has now surpassed $16.1 billion, with the recent completion of the new US wildfire catastrophe bond for utility Sempra
China:Guo Shuqing says need for insurance covering typhoons, floods is urgent
Mr Guo Shuqing, CBIRC chairman, has said that China’s catastrophe insurance scheme takes earthquakes as the main cause of disasters, but it is urgent to include typhoons, floods, and droughts in the scheme’s coverage. FULL ORIGINAL PUBLICATION HERE
NZ Super Fund expands cat bond investments, doubles Elementum allocation
The New Zealand Superannuation Fund (NZ Super Fund), one of the government pension investment providers, has added to its insurance and reinsurance linked investments again in the last year, with a doubling of its allocation to investment manager Elementum Advisors, seemingly all in catastrophe bonds. The New Zealand Superannuation Fund (NZ Super Fund) has been investing into a range of insurance and reinsurance linked assets for a number of years, with allocations to life settlements,