Twelve Capital and Securis to merge, creating founder-led ILS manager with $7.8bn
Breaking news today as established insurance-linked securities (ILS) investment managers Twelve Capital and Securis Investment Partners have announced their intention to merge, with the resulting ILS manager set to be a significant founder-led business with around $7.8 billion in assets under management. Both sets of shareholders are set to remain fully invested in the combined […]
PGGM / PFZW ILS portfolio returns 5.5% for H1, AUM slightly down
The broadly diversified portfolio of insurance-linked securities (ILS) and reinsurance investments managed by pension investment firm PGGM on behalf of end-client the Dutch pension PFZW, has returned 5.5% over the first-half of 2024. The 5.5% ILS portfolio return for the first-half of 2024 is slightly down on the prior year’s 6.3%. We suspect that the […]
Collateralized / ILS take 66% of Florida Citizens reinsurance renewal, Nephila $587m
Collateralized capital markets backed reinsurance capacity and insurance-linked securities (ILS) fund managers have taken roughly two-thirds of Florida Citizens traditional reinsurance tower at the recent renewals, with Nephila Capital remaining the largest of those markets. Florida’s Citizens Property Insurance Corporation has placed increasing reliance on the capital markets to support its catastrophe reinsurance needs in […]
Swiss pension Nest Sammelstiftung notes diversifying contribution of ILS to returns
Switzerland based pension fund Nest Sammelstiftung, or the Nest Collective Foundation, has highlighted the diversifying benefit of its insurance-linked securities (ILS) allocation, pointing to ILS market returns as a bright spot from 2023. Nest Sammelstiftung considers itself an ecological-ethical pension investor, following sustainable investment strategies, one of which is the inclusion of natural disaster risk […]
Insurance-linked securities – A rare liquid market with income & value: Schroders Capital
Insurance-linked securities (ILS) such as catastrophe bonds represent a rare opportunity for investors today, being one of only a few liquid markets that offer value, with most others having historically tight risk premiums, while also being an asset class that offers uncorrelated income, investment manager Schroders Capital has said. In giving its investment outlook for […]
$60.5m of Hannover Re’s Seaside Re private cat bonds mature, $78.25m extended again
Some $60.5 million of the Seaside Re private catastrophe bond transactions facilitated by global reinsurance firm Hannover Re have now been allowed to mature, reducing the amount outstanding with their maturity dates extended to $78.25 million and those remaining have had their maturity dates pushed further out to October. There have been repeated extensions of […]
Cat bonds & ILS to continue growth, can exceed target returns with no losses: Twelve
Depending on the outcome of the hurricane season and the occurrence of other catastrophes, investors in catastrophe bonds could be on-track to meet or even exceed target returns in 2024, with cat bond market yields still elevated and the fundamentals of the insurance-linked securities (ILS) market strong, analysis from Twelve Capital explains. In reviewing the […]
Hannover Re’s vehicle Kaith Re issues $5m LI Re 2024-1 private cat bond
A new $5 million private catastrophe bond issued by German reinsurance company Hannover Re’s Bermuda-domiciled vehicle Kaith Re Ltd. has come to light, with the LI Re (Series 2024-1) deal assumed to be providing privately placed collateralized and securitized catastrophe reinsurance capacity for an unknown sponsor. Hannover Re has facilitated the transaction, helping the unnamed cedent […]
Florida Citizens only buys $3.564bn of reinsurance for 2024, despite 7.9% drop in price
Florida’s Citizens Property Insurance Corporation, the state’s insurer of last resort, has completed its reinsurance renewals for 2024, but only purchased $3.564 billion of coverage across its traditional reinsurance and catastrophe bond arrangements, despite experiencing a softer market environment and lower pricing than a year ago. Florida Citizens had been expected to buy its largest […]
Jamaica due US $16.3m CCRIF payout, as Beryl triggered parametric cyclone cover
Jamaica is set to benefit from an approximately US $16.3 million payout from the CCRIF SPC (formerly known as the Caribbean Catastrophe Risk Insurance Facility) after hurricane Beryl triggered its parametric tropical cyclone insurance policy. The country’s Minister of Finance Dr. Nigel Clarke explained that the CCRIF event report has been delivered, indicating that major […]