ILS Related


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

Interest in ESG investing boosted by Covid

ORIGINAL PUBLICATION HERE One of the side-effects of the Covid-19 crisis has been an increased interest in ESG investing by UK investors, a recent Aviva survey reveals. ESG – Environmental, Social and Governance – is now the commonly-used term to describe the three main factors in measuring the sustainability and societal impact of a company or business. Other terms that might be used include ethical, sustainable, responsible, green and Corporate Social Responsibility (CSR) amongst others.

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ESG fund assets forecast for explosive growth, a huge ILS opportunity

FULL ORIGINAL PUBLICATION HERE The rapid growth of ESG (environmental, social, governance) appropriate investment products is set to create a “paradigm shift” in investment markets, which could lead to more than 50% of European mutual fund assets invested in ESG funds as soon as 2025, according to PwC. In a recent report PwC highlights the stunning growth potential of ESG investing, forecasting a base case 21.9% compound annual growth rate (CAGR) from 2019 to 2025

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Cat bond activity to pick up, issuance conditions attractive: GC’s Des Potter

FULL ORIGINAL PUBLICATION HERE Cat bonds are set to buck the trend elsewhere in the ILS market, with a strong issuance pipeline for Q4 2020 and Q1 2021. This is according to Des Potter, managing director ILS origination and structuring at GC Securities, part of Guy Carpenter, in an interview with Artemis. Encouraged by the firming of reinsurance and retrocession rates, he thought cat bonds would help fill the capacity gap in the retrocession market,

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阅读英文原件。 “债券”一词具有某种魔力,因为其与我们生活的各个方面都息息相关。但是在商业世界中,债券作为金融工具,由政府和机构用于应对压力时期的资金困难。全世界的企业都从新冠肺炎大流行的影响中解脱出来的这个明显的时刻,是空前未有的。 当我的老朋友印度南部城市班加罗尔的独立分析师奈尔(T.B. Nair)告诉我巨灾债券在全球市场中逐渐普及时,引起了我对该题目的兴趣。奈尔提到了,巨灾债券正在成为一些国家确保大型跨国基础设施项目免于自然灾害的首选工具。他甚至继续提出,巨灾债券对印度克服旋风、洪水等造成的经济困难将大有帮助。 巨灾债券是结构性证券,可让保险单位将风险转移至资本投资者。换而言之,保险单位利用债券支付投资者承担重大风险,例如由于最大的地震和飓风造成的巨大损失。 据新华社报道,中国已经在加快建立巨灾保险制度的工作,以保护生命和财产免受地震,洪水和飓风等自然灾害的损失。2015年,中再集团在国际市场上发行了5,000万美元的巨灾债券,以投保国内地震造成的风险。中再集团声明,该发行通过利用资本市场帮助建立了巨灾保险的多元化风险分担机制。

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ILS increasingly attractive in the face of COVID-19

ORIGINAL PUBLICATION HERE. INTELLIGENT INSURER OWN WEBSITE PUBLICATION HERE As an asset class that is uncorrelated with financial markets, provides environmental, social and corporate governance (ESG) advantages and offers good returns in the current low interest environment, insurance-linked securities (ILS) are becoming increasingly attractive, Kirill Savrassov, an ILS and sovereign risk transfer specialist, told Baden-Baden Today. ILS activity is gaining momentum because COVID-19 has highlighted the benefits of investing in an asset class that is

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Governments and institutions bet big on CAT bonds

ORIGINAL PUBLICATION HERE. HARD PAPER VERSION HERE There is something magical about the word bonds as it is closely linked with all facets of our life. But in the world of business, bonds are financial instruments that are used by governments and institutions to tide over funding difficulties in times of stress. And at no other time has it been more pronounced than at this juncture when businesses all over the world are reeling from

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Collateralized reinsurance to contract further, liquid ILS strategies to prosper: Aon

FULL ORIGINAL PUBLICATION HERE The collateralized reinsurance market segment of insurance-linked securities (ILS) is expected to contract further, according to broker Aon, although it will likely remain the largest segment of ILS for the foreseeable future it seems. In Aon Securities’ latest annual ILS market report, the capital markets unit of the global insurance and reinsurance broker explains that the collateralized reinsurance segment shrank by 6.5% in the first-half of 2020. At the end of

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