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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 - 24 October

    A look at the major activity in structured finance over the past seven days.

    Pipeline The balance appeared to shift last week, as fewer deals joined the pipeline and far more d...

    News    24 October 2016
  • Arcus makes first addition

    Lloyd's of London syndicate Arcus Syndicate 1856, which is fully capitalised with funds managed by t...

    Job Swaps    21 October 2016
  • Insurers test blockchain potential

    A group of insurers and reinsurers are exploring the potential of distributed ledger technologies to...

    News Round-up    19 October 2016
  • SCI Start the Week - 17 October

    A look at the major activity in structured finance over the past seven days.

    Pipeline The long list of additions to the pipeline last week was once more driven by auto ABS. The...

    News    17 October 2016
  • Law firm poaches ILS pro

    Dentons has hired John Sarchio as partner in its insurance regulatory practice. He will advise on in...

    Job Swaps    11 October 2016
  • Endurance acquisition announced

    SOMPO has announced a US$6.3bn acquisition of Endurance, the owner of ILS fund manager Blue Capital...

    Job Swaps    6 October 2016
  • Diversifying strategies unit enhanced

    Sara Rejal has been promoted to head of liquid alternatives and Karen Dolenec to head of real assets...

    Job Swaps    5 October 2016
  • ILS pro promoted

    Aon Securities has promoted Danny Bailey to its new head of capital markets. He will be based at the...

    Job Swaps    3 October 2016
  • Firm opens US office

    Leadenhall Capital Partners has set up a US operation, to be led by new hire Brian Weatherholtz. He...

    Job Swaps    3 October 2016
  • ILS duo recruited

    AXA Investment Managers has hired Marc Belbenoit-Avich and Robin Chiche to its ILS team. Belbenoit-A...

    Job Swaps    29 September 2016
  • SCI Start the Week - 26 September

    A look at the major activity in structured finance over the past seven days.

    Pipeline Pipeline activity seemed elevated again last week. There were eight new ABS added, along...

    News    26 September 2016
  • ILS firm hires industry vet

    Markus Schmutz has joined Rewire Securities. He will work at the investment bank to boost its analyt...

    Job Swaps    19 September 2016
  • SCI Start the Week - 19 September

    A look at the major activity in structured finance over the past seven days.

    Pipeline After the flood of additions in the week before, last week's pipeline activity was calmer....

    News    19 September 2016
  • Weather prediction

    JLT's weather ILS the first of many?

    The first weather catastrophe bond for 17 years has hit the market. It is hoped that the deal will k...

    News Analysis    15 September 2016
  • TigerRisk adds London pro

    TigerRisk Capital Markets & Advisory has appointed Leo Beckham as md. He will be based in Lo...

    Job Swaps    14 September 2016
  • UK ILS bill set for 2017

    The London Market Group (LMG) has welcomed a letter from HM Treasury that outlines early 2017 as the...

    News Round-up    12 September 2016
  • ILS firm boosts expertise

    Michael Watson has joined Vario Partners in a non-executive capacity. He officially begins at the IL...

    Job Swaps    12 September 2016
  • SCI Start the Week - 12 September

    A look at the major activity in structured finance over the past seven days.

    Pipeline A flood of ABS and CMBS additions swelled the pipeline last week. There were 18 of the fo...

    News    12 September 2016
  • Cat bond issuance declining

    Catastrophe bond issuance averaged two deals a month in the 12 months to 30 June 2016, notes Aon Sec...

    News Round-up    9 September 2016
  • Structured products pro recruited

    JLT Re has hired Matthew Carter as a partner in its London market and international divisio...

    Job Swaps    8 September 2016
  • ILS start-up names ceo

    Samir Shah has been appointed ceo of Ledger Investing, a start-up that seeks to provide a B2B market...

    Job Swaps    5 September 2016