Reinsurance News

insurance-linked securities

Insurance-linked securities (ILS) are a specialist asset class where capital market investors allocate to instruments exposed to insurance and reinsurance risks.

Read our insurance-linked securities news and analysis below.

BAM utilises capital markets for $100mn of financial guarantee reinsurance

20th April 2018

Build America Mutual (BAM), a mutual bond insurance company, has announced that it will bolster its claims paying resources by issuing US $100 million of bonds to the capital markets via an insurance-linked securities (ILS) arrangement with Bermudian special purpose insurer (SPI), Fidus Re. This collateralized reinsurance arrangement will cover losses ... Read the full article

Arch obtains $375mn of mortgage reinsurance from capital markets

20th April 2018

Arch Mortgage Insurance Company (Arch MI), a subsidiary of Bermudian insurance and reinsurance group Arch Capital, has secured $374.46 million of indemnity reinsurance from the capital markets through Bellemeade Re 2018-1 Ltd., a special purpose insurer (SPI). The reinsurance protection provides Arch MI with fully collateralised coverage for a portfolio of mortgage ... Read the full article

FEMA to transfer National Flood Insurance Program risk to capital markets

4th April 2018

The Federal Emergency Management Agency (FEMA) has announced plans to de-risk the U.S National Flood Insurance Program (NFIP) with additional reinsurance by engaging the capital markets through an insurance-linked securities (ILS) transaction scheduled for July 2018. FEMA claims this new ‘building block’ will allow it to transfer risk through both traditional ... Read the full article

Essent secures $424mn of mortgage reinsurance from capital markets

27th March 2018

Mortgage insurer Essent Guaranty has completed a transaction with Radnor Re 2018-1, a newly formed special purpose insurer, which sees Essent obtain US $424.4 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written by Essent in 2017. Essent Guaranty, which is a wholly owned subsidiary of ... Read the full article

Neon launches UK’s first ILS vehicle & transaction

4th January 2018

Neon has announced the launch of the first ILS vehicle in the UK, NCM Re (UK PCC), after having raised third-party capital to support the UK's first ILS transaction which was finalised on January 1st. Neon’s first ILS transaction is a $72 million collateralised quota share reinsurance transaction that will underwrite a ... Read the full article

London Market welcomes approval of ILS regulations

30th November 2017

The London Market has welcomed the news that the proposed UK legislation to reform its regulatory and tax regime for Insurance Linked Securities has received parliamentary approval. William Hogarth at Clyde & Co called the new legislation a "great step forward" for the London market. The final formalities allowing it to pass into ... Read the full article

UK seeks to keep reinsurance market competitive with new ILS rules

24th July 2017

The UK government has announced updates to its regulatory and tax regime for Insurance Linked Securities (ILS) as it seeks to ensure the re/insurance business environment remains competitive throughout the transition out of European Union membership. The regulatory reforms cover how to set up an ILS vehicle, the associated taxation system ... Read the full article