Reinsurance News
Alternative capital
Alternative capital has become a core fixture of the global reinsurance capital stack, as large reinsurance companies partner with third-party investors, or cede risk to managers of third-party capital.
Alternative reinsurance capital has been a key trend over the last two decades, growing to make up approximately 15% of the global reinsurance capital and an even larger proportion of global catastrophe focused reinsurance capital.
Alternative capital is also finding its way into more lines of reinsurance business, including the life and annuity market, as well as casualty and specialty lines.
Read our news about alternative capital in reinsurance below.
ILS demand to be elevated throughout 2023: Aon
25th January 2023
Analysts at Aon have said they expect demand for all forms of alternative capital to remain elevated throughout 2023 as insurers and reinsurers look to mitigate both macro-economic and reinsurance market challenges. In a new report on January reinsurance market dynamics, the broker noted that ILS capital has become an “essential ... Read the full article
Host of economic headwinds continue to constrain US ILS capital: Gallagher
12th January 2023
Analysts at Gallagher Securities have suggested the combination of Hurricane Ian losses, lacklustre returns results, the strong US dollar, and a large number of issuances since 2020 are leaving USD insurance-linked securities (ILS) capital constrained in terms of liquidity, implicating that risk spreads are widening materially. In addition, ILS capacity continues ... Read the full article
Cat bond investors secure higher pricing as Q4 issuance hits $1.6bn: Report
5th January 2023
In the final quarter of 2022, catastrophe bond and related insurance-linked securities (ILS) issuance fell when compared with the prior year quarter, but remained robust at $1.6 billion, helping the outstanding market hit a year-end high of $37.9 billion, according to Artemis. Our ILS-focused sister ... Read the full article
9M catastrophe bond issuance above-average: Report
5th October 2022
Catastrophe bond and related insurance-linked securities (ILS) issuance was particularly quiet in the third-quarter of 2022, but combined with a solid first-half of the year for the market, helped issuance for the nine-month period come in above-average at more than $8.9 billion, reports Artemis. The Q3 2022 ... Read the full article
Fannie Mae transfers $700m of mortgage credit risk to re/insurers
27th September 2022
Fannie Mae has announced the transfer of $700m of mortgage credit risk to private re/insurers through its Credit Insurance Risk Transfer (CIRT) 2022-9 program, as part of its ongoing effort to reduce taxpayer risk by increasing the role of private capital in the mortgage market. Rob Schaefer, Fannie Mae Vice President ... Read the full article
Alternative capital market poised to resume growth trend: Moody’s
9th September 2022
A positive pricing momentum for reinsurance will help alternative capital – capital from investors in the form of collateralized reinsurance, catastrophe bonds and reinsurance sidecars – to restart growth after five years of poor returns, according to a recent Moody’s report. Over the past 15 years, alternative capital has grown from ... Read the full article
Colin Harper joins Aon alternative risk transfer team
24th June 2022
Aon has appointed Colin Harper as Managing Director, Alternative Risk Transfer and Innovation within its Strategic Solutions and Innovation Practice based in Houston, Texas. Harper joins Aon from Descartes Underwriting, where he spent the previous year as Senior Business Development Manager, North America, also based in Houston. Prior to this, he worked ... Read the full article
Stefano Sola to lead Vesttoo’s capital markets team
22nd June 2022
Risk transfer and investment platform Vesttoo has announced the appointment of ILS industry veteran and investment executive Stefano Sola as its Global Head of Capital Markets. In this role, he will lead a global team dedicated to capital raising and business development, while also working to partner with financial institutions, banks, ... Read the full article
Global reinsurance capital hit new high of $675bn in 2021: Aon
29th April 2022
Broker Aon estimates that global reinsurer capital increased by almost 4% through year end 2021 to $675 billion, driven by growth in traditional capital, slightly offset by a decline in alternative capital. The year-end 2021 figure from Aon represents growth of more than 2% from the $660 billion the firm ... Read the full article
Swiss Re secures $1.15bn hybrid bank financing / ILS deal for group-wide losses
14th April 2022
Reinsurance giant Swiss Re has partnered with J.P. Morgan and institutional investors to complete an innovative, first of its kind hybrid transaction which combines bank financing and insurance-linked securities (ILS), securing $1.15 billion in protection for severe underwriting-related losses. For this innovative multi-year stop-loss transaction, J.P. Morgan provides $1 billion in ... Read the full article
Busy first quarter sees outstanding cat bond & ILS market hit new high: Report
4th April 2022
Data from our insurance-linked securities (ILS) focused sister site, Artemis, shows that catastrophe bond and related ILS issuance surpassed $3.5 billion in the first-quarter of 2022, taking the outstanding market to a new record high of approximately $37.5 billion. Artemis' latest quarterly report on the market, Q1 ... Read the full article
2021 marks a record year for catastrophe bond issuance: Report
6th January 2022
Catastrophe bond and related insurance-linked securities (ILS) issuance reached a huge $14 billion in 2021, representing year-on-year growth of 15%, reports Artemis. The latest quarterly report on the catastrophe bond and related ILS market, which examines issuance in the fourth-quarter and full-year 2021, is now ... Read the full article
NMI Holdings secures additional $364mn of mortgage reinsurance
27th October 2021
National Mortgage Insurance Corporation (NMI Holdings, Inc.) has returned to the capital markets for the seventh time since 2017, securing $364 million of fully-collateralised mortgage reinsurance protection through an Oaktown Re mortgage insurance-linked securities (ILS) transaction. Oaktown Re VII Ltd. is a newly registered Bermuda domiciled special purpose insurer which ... Read the full article
Market survey reveals anticipation of further reinsurance rate hardening
26th October 2021
Respondents to our latest reinsurance market survey, in collaboration with sister-site Artemis, are optimistic for further rate hardening at the important January 1st 2022 renewals, as pricing remains the key for buyers of protection. Data from the 2021 edition of the global reinsurance market survey is based on ... Read the full article
Aon announces historic Hong Kong cat bond
6th October 2021
Global re/insurance broker Aon has structured and placed the first catastrophe bond issued from a Hong Kong domicile. Executed by Aon Securities (Hong Kong), the cat bond was sponsored by non-life reinsurance firm China Property & Casualty Reinsurance Company and provides $30 million-per-occurrence typhoon catastrophe protection. Aon states that a meaningful percentage ... Read the full article
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