ILS Related


Cherry picked selection of news on ILS, DRF, Reinsurance and other matters related to our activities. Updated on a weekly basis.

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

Read More »

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,

Read More »

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

Read More »

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

Read More »

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,

Read More »

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

Read More »

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,

Read More »