Collateralized fronting a very important element for us: Steinmann, Hannover Re
For global reinsurance firm Hannover Re, the business of collateralized fronting, where the company fronts reinsurance cedents for ILS investors and funds, is seen as a very important element of its business and an area of growth, executive Thorsten Steinmann said this week. Speaking during a briefing held at the Baden Baden reinsurance meeting in […]
AI-improved risk modelling can streamline catastrophe bond transactions: World Bank
According to executives at the World Bank, artificial intelligence (AI) based improvements to catastrophe risk modelling could in future allow more transactions to be brought to the catastrophe bond market, with less lead time and potentially wider investor acceptance. In a joint report on the matter, the World Bank’s Michael Bennett, Head of Market Solutions […]
Twelve Capital surpasses $4bn in cat bond and ILS AUM for the first time
Twelve Capital, the Zurich-headquartered insurance-linked securities (ILS), catastrophe bond and reinsurance investment manager, has reached a new milestone in terms of third-party assets under management, surpassing $4 billion for the very first time across its cat bond and ILS portfolios. With a more than 14 year history of insurance and reinsurance-linked investment management, Twelve Capital […]
ILS: simple, powerful, and accessible for all
“Insurance-linked securities (ILS) offer a good alternative or complement to reinsurance, and nothing complicated,” said Kirill Savrassov, convenor of the ILS Education Programme, lamenting how ILS has often been viewed as a niche product reserved for sophisticated markets or large financial institutions. “For developing countries ILS instruments such as sovereign parametric catastrophe bonds, are often […]
Why educating the industry about ILS is so important
Insurance-linked securities (ILS) have become a vital part of the reinsurance industry, providing alternative capital for risk transfer, allowing investors to access insurance risks through financial markets, spread catastrophe risks and enhance market capacity. The key benefits of ILS are clear: greater diversification for investors, reduced reliance on traditional reinsurance and increased capacity to absorb […]
Hong Kong hopes to kick-start local ILS investment with tax exemption
Recognising that demand for asset and wealth management services are set to increase and that certain alternative asset classes are currently less attractive due to their taxation, the government of Hong Kong aims to boost its investment sector with a broadening of profit tax exemptions, with insurance-linked securities (ILS) one asset class in focus. Hong […]
Hannover Re’s E+S Rück forecasts nat cat reinsurance demand, improved prices and terms
Commenting on its expectations for the end of year reinsurance renewals in Germany, Hannover Re’s German subsidiary E+S Rückversicherung AG has said that it expects demand for property catastrophe reinsurance to rise further, while risk adjusted price and term improvements are also expected. The expectations comes after continued losses from severe weather and natural catastrophe […]
Cat bond market index bounces back, now only -0.30% since hurricane Milton
At Friday’s pricing, the catastrophe bond market index calculated by Swiss Re Capital Markets bounced back by more than one percent, leaving the benchmark for the entire cat bond market now only -0.30% down since hurricane Milton, while the US wind specific version of the cat bond index also recovered and is now -1.31% since […]
UCITS cat bond fund index only fell 0.42% on hurricane Milton
It’s now clear that catastrophe bond funds fell far less than the market benchmark on the first pricing after hurricane Milton, with the Plenum CAT Bond UCITS Fund Indices only falling 0.42% at Friday October 11th and the majority of cat bond funds absorbing the initial mark-to-market impacts of the storm within two weeks of returns. […]
Alternative capital a material and critical reinsurance partner through crises: Rapin, Nephila
In comments made around Guy Carpenter’s Baden-Baden Reinsurance Symposium event, Maria Rapin, the CEO of Nephila Climate, the climate and weather focused arm of insurance-linked securities (ILS) specialist Nephila Capital, highlighted that alternative capital is a long-term partner for reinsurance that has been well-tested through catastrophes and crises. This year’s theme of the reinsurance broker’s […]