Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
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Insurance-linked securities

Insurance-linked securities or ILS are single- or multiple-tranche securitisations facilitating the transfer of risk from the insurance sector to the capital markets. This transfer of risk usually references either catastrophe risk or life risk, though there have been securitisations of other insurance risk, such as motor. Catastrophe risk deals involve the transfer from one party to another of natural catastrophe risk, typically from non-life insurers or reinsurers via the capital markets to investors. It is facilitated by a variety of instruments, chief among them are catastrophe bonds or cat bonds; catastrophe risk obligations (CROs), which utilise collateralised debt obligation (CDO) technology to transfer risk to investors in multiple tranches; and industry loss warranty (ILW) based structures. Life risk transfer involves the transfer of longevity, mortality and pandemic risk from one party to another, typically from life insurers or life reinsurers via the capital markets to investors. Chief among the products used in this sector are life securitisations; life settlement securitisation; and longevity and mortality bonds.


  • SCI Start the Week - 9 September

    A review of securitisation activity over the past seven days

    Transaction of the week The EIF has launched two new funding initiatives to support SMEs in Europe,...

    News    9 September 2019
  • SCI Start the Week - 2 September

    A review of securitisation activity over the past seven days

    Market commentary A new Fitch study shows that there is a wide range in trustee reported market val...

    News    2 September 2019
  • Esoteric opportunities

    Structured solutions to address corporate risk transfer needs

    The newly-formed CAC Specialty (SCI 21 August) is seeking to capitalise on the convergence of the in...

    News    30 August 2019
  • Turning point

    Catastrophe bonds could see a redirection of spreads

    The past two years of record-breaking reinsurance losses, along with technically-driven spread widen...

    News Analysis    31 July 2019
  • Investment chief appointed

    Sector developments and company hires

    Business Mortgage Finance 6 update Business Mortgage Finance 6, the issuer, has informed noteholde...

    Market moves    10 July 2019
  • New deals surge

    Quarterly SCI data update

    2Q19 saw a surge in new issuance volume across securitisation markets either side of the Atlantic. T...

    News Analysis    10 July 2019
  • MRT potential

    Reinsurer opportunities eyed

    The mortgage risk transfer (MRT) programme in the US has the potential to rival natural catastrophe...

    News Analysis    6 June 2019
  • SCI Start the week - 13 May

    A review of securitisation activity over the past seven days

    Transaction of the week Last week saw an unusual Irish CMBS hit the European pipeline, from debut...

    News    13 May 2019
  • First SOFR-indexed MBS tranche inked

    Sector developments and company hires

    Claims predictability to improve? The Florida legislature last month passed a bill to reform the re...

    Market moves    2 May 2019
  • SFR issuer prepays class F notes

    Sector developments and company hires

    EMEA Alantra has reinforced its portfolio advisory capabilities with the addition of six senior p...

    Market moves    30 April 2019
  • Landmark involvement

    Michael Bennett, head of derivatives and structured finance for the World Bank Treasury, answers SCI...

    Q: How and when did the World Bank Treasury become involved in the risk transfer market? A: We beca...

    The Structured Credit Interview    25 April 2019
  • ILS restructuring agreed

    Sector developments and company hires

    ILS restructuring agreed Ballantyne Re has entered into a lock-up support agreement with Ambac Ass...

    Market moves    15 April 2019
  • BWIC boom

    Quarterly SCI data update

    The first quarter of a year is usually quieter than the previous quarter and, for the most part, 1Q1...

    News Analysis    11 April 2019
  • Purchase option to be exercised

    Sector developments and company hires

    EMEA Capzanine has appointed Renaud Tourmente as head of business development, effective from 6 M...

    Market moves    22 March 2019
  • R-PACE rulemaking proposals outlined

    Sector developments and company hires

    Credit line secured Foundation Home Loans has entered into a new £350m warehouse credit...

    Market moves    11 March 2019
  • ILS double

    Company hires and sector developments

    ILS hires Tangency Capital has hired Jo Stanton to oversee finance and operations, starting 1 May...

    Market moves    4 March 2019
  • Debuting duo

    New ILS peril, domicile introduced

    GC Securities has placed a pair of innovative catastrophe bonds. Insurance Australia Group&rsquo...

    News    27 February 2019
  • Model behaviour?

    Accuracy of ILS loss predictions hinges on evolving models

    Actual losses in the ILS market may be broadly in line with predictions, but there are sectors with...

    News Analysis    25 February 2019
  • Insurer boosts ILS capability

    Sector developments and company hires

    Acquisitions Eldridge Industries has increased its investment in Maranon, now holding a majority o...

    Market moves    6 February 2019
  • New ILS unit launched

    Sector developments and company hires

    ABS outfit launched US Bancorp has launched a new ABS lending business, providing non-recourse com...

    Market moves    25 January 2019
  • CLOs retain top ranking

    Quarterly SCI data update

    CLOs remained the top asset class in terms of deal count for European and US new issuance in 4Q18, a...

    News Analysis    24 January 2019