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.
Innovative approaches to insurance-linked investments: Register for live webcast
2nd September 2021
Artemis, our insurance-linked securities (ILS) focused sister site, has partnered with Vesttoo to bring you another live webcast. This time, the discussion will focus on opportunities to access high frequency, low severity Life and Property & Casualty (P&C) insurance asset classes. Register online here to secure your place ... Read the full article
Cat bond & related ILS issuance sets new record in Q2 2021 at $8.5bn: Report
1st July 2021
Catastrophe bond and related insurance-linked securities (ILS) issuance reached a record $8.5 billion in the second quarter of 2021, of which almost $6 billion or more than 70% covered property catastrophe risks, according to the Artemis Q2 2021 market report. The latest Artemis cat bond and ILS market report, ... Read the full article
Essent Guaranty secures $558mn from capital markets
24th June 2021
Essent Group subsidiary Essent Guaranty has obtained $557.9 million of fully collateralised excess of loss reinsurance coverage. The coverage is on mortgage insurance policies written in August 2020 through March 2021 from Radnor Re 2021-1 Ltd., a newly formed Bermuda special purpose insurer. Radnor Re 2021-1 Ltd. has funded its ... Read the full article
Cat bond growth propelled by strong investor demand: Moody’s
17th June 2021
Moody’s has reported that the catastrophe bond market saw record issuance in 2020 despite a brief pause in Q2 following a particularly tumultuous period for the financial markets. And looking ahead through 2021, the rating agency expects cat bond issuance to continue to grow with strong investor demand for the ... Read the full article
Former AXA XL duo to launch Specialty Insurance Cell
2nd June 2021
Former AXA XL Executive Jonathan Beck and Underwriter Richard Spurrier are set to launch a new Specialty Insurance Cell focused on land-based and maritime Kidnap and Ransom, Fine Art, Jewellery and Classic Car risks. The Cell, named ANT Exceptional Risks, launches alongside Special Purpose ILS vehicle ANT Insure. Ant Insure has been ... Read the full article
First-quarter catastrophe bond & ILS issuance robust again at $4.63bn: Report
1st April 2021
Data from Artemis' Q1 2020 catastrophe bond and insurance-linked securities (ILS) market report shows that issuance hit a huge $4.63 billion in the period, making it the second most active first quarter in the market's history. The latest quarterly report on the catastrophe bond and related ILS market, 'Upsizing ... Read the full article
ILS and reinsurance market show resilience at 2021 renewals: AM Best
31st March 2021
The insurance-linked securities (ILS) and traditional reinsurance markets have shown resilience at the January 2021 renewals, despite multiple small-to-medium-sized catastrophe losses and the COVID-19 pandemic, according to analysts at AM Best. A report by the rating agency shows that there was sufficient ILS and traditional reinsurance capital to meet demand at ... Read the full article
Swiss Re highlights alt capital as key segment of property cat, retro market
17th March 2021
A Swiss Re report has highlighted alternative capital (AC) as an important segment of the property catastrophe and retrocession market, representing 20-25% of global reinsurance capacity. The report also notes how AC prices typically move in parallel with traditional reinsurance so is experiencing rate hardening in line with the wider sector. In ... Read the full article
Importance of alternative reinsurance capital growing for Swiss Re: ILS NYC 2021
16th February 2021
At Swiss Re, alternative, or third-party reinsurance capital has become an increasing part of the reinsurance giant's capital management strategy, and as the insurance-linked securities (ILS) asset class looks to longer-tail classes, the firm is focused on finding ways to transfer risk efficiently. This is according to Judy Klugman, Global ... Read the full article
Lloyd’s CFO Keese predicts strong interest in market’s ILS platform
14th January 2021
As the specialist Lloyd's of London insurance and reinsurance marketplace continues to evolve and enable additional modern ways of insurance financing, interest in the market sponsored London Bridge Risk PCC is expected to be robust, according to Burkhard Keese, Chief Financial Officer (CFO) at Lloyd's. Earlier today, Lloyd's announced that ... Read the full article
Lloyd’s creates London Bridge Risk PCC as regulators approve new mISPV
14th January 2021
In a move which provides investors with easier access to the specialist Lloyd's of London insurance and reinsurance marketplace, regulators in the UK have approved the creation of a new multi Insurance Special Purpose Vehicle (mISPV). As part of the Future at Lloyd's strategy, the receipt of regulatory approval from both ... Read the full article
Third-party capital & ILS assets rise in 2020 as market shows signs of recovery
14th January 2021
Third-party reinsurance and insurance-linked securities (ILS) assets under management (AuM) of the top-ten ILS fund and third-party reinsurance capital managers increased to more than $61 billion through H2 2020, led by Nephila Capital, LGT ILS Partners, Fermat Capital Management, and Leadenhall Capital Partners. Data featured in the Artemis Insurance ... Read the full article
AM Best expects “more measured” use of alternative capital
14th December 2020
Analysts at AM Best are confident that third-party capital will continue to play an important role in the re/insurance industry, but they anticipate that the use of alternative capital structures will be “more measured” in future. As part of its Global Reinsurance Market Outlook, the rating agency noted that the catastrophic ... Read the full article
Prospero Re gains BMA approval to write traditional reinsurance
3rd December 2020
Prospero Re Ltd., a reinsurance company wholly owned by ILS Capital Management, has received Bermuda Monetary Authority (BMA) approval of its new business plan, which allows it to write both traditional and collateralized reinsurance contracts. Under the amended business plan, Prospero Re retains the benefits of the collateralized reinsurance model while ... Read the full article
Q3 catastrophe bond & ILS issuance above-average at $1.63bn: report
2nd October 2020
The latest catastrophe bond and insurance-linked securities (ILS) market report from our sister publication, Artemis, shows that despite the challenges of the ongoing COVID-19 pandemic, issuance levels remained above-average in the third-quarter of 2020. Available to download now, the report, ‘Q3 ... Read the full article
Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.
