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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.


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    Sector developments and company hires

    APAC Frontier Advisors has appointed Joe Clark as senior consultant in its alternatives and deriv...

    Market moves    26 March 2020
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    Sector developments and company hires

    Insurer combination agreed Aon and Willis Towers Watson have agreed to combine in an all-stock...

    Market moves    9 March 2020
  • Pandemic cat bonds triggered

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    News Analysis    3 March 2020
  • SCI Start the Week - 2 March

    A review of securitisation activity over the past seven days

    New MRT report SCI has published a new Special Report on the US Mortgage Risk Transfer sector &...

    News    2 March 2020
  • Green ILS framework rolled out

    Sector developments and company hires

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    Market moves    26 February 2020
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    Sector developments and company hires

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    Market moves    25 February 2020
  • SCI Start the Week - 17 February

    A review of securitisation activity over the past seven days

    REMINDER: SCI NPL Securitisation Awards 2020 Nominations have now opened for the inaugural SC...

    News    17 February 2020
  • Diversified play

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    Reinsurance rate improvements are precipitating new investor interest in and fund reallocations to t...

    News    13 February 2020
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    Sector developments and company hires

    Additional CLOs for Ares An Ares Management Corporation subsidiary is set to acquire a managing int...

    Market moves    3 February 2020
  • SCI Start the Week - 3 February

    A review of securitisation activity over the past seven days

    Transaction of the week Goldman Sachs has completed an unusual catastrophe bond that covers the tai...

    News    3 February 2020
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    Sector developments and company hires

    Acquisitions A consortium led by funds managed by Stone Point Capital and Further Global has agreed...

    Market moves    28 January 2020
  • Tail risk debut

    Innovative cat bond completed

    Goldman Sachs has completed an unusual catastrophe bond that covers the tail risk that State Nationa...

    News    27 January 2020
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    Sector developments and company hires

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    Market moves    22 January 2020
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    Market moves    15 January 2020
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    Market moves    14 January 2020
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    Market moves    13 January 2020
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    Market moves    8 January 2020
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    Asia Pacific ISDA has appointed Su Yen Chia as its new head of Asia-Pacific public policy. Chia p...

    Market moves    7 January 2020
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    Sector developments and company hires

    EMEA Kingswood Holdings has appointed Lindsey McMurray and Howard Garland to its board from Polle...

    Market moves    17 December 2019
  • Turbo feature for CLO reset

    Sector developments and company hires

    Early upgrade DBRS Morningstar has taken the unusual step of upgrading from double-B (low) to dou...

    Market moves    9 December 2019
  • SCI Start the Week - 2 December

    A review of securitisation activity over the past seven days

    Transaction of the week Credit Agricole is marketing a securitisation of Dutch consumer loans origi...

    News    2 December 2019