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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.


  • 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
  • Vario adds ex-JPM pair

    Vario Partners has appointed Markus Gesmann as head of research and modelling and Mike Kontaratos as...

    Job Swaps    2 September 2016
  • Payment history scrutinised

    The ability and willingness of catastrophe bond issuers to pay claims in a timely manner continue to...

    News    1 September 2016
  • Willis ceo announced

    Willis Re has appointed Chris McDowell as ceo of Willis Re Bermuda. On 1 January 2017, he will offic...

    Job Swaps    24 August 2016
  • SCI Start the Week - 22 August

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

    Pipeline The outstanding deal pipeline has shrunk significantly over the past few weeks as the year...

    News    22 August 2016
  • ILS approach finalised

    AM Best has finalised its methodology for rating insurance-linked securities and insurance-linked st...

    News Round-up    19 August 2016
  • United Guaranty sale agreed

    Arch Capital Group is set to acquire United Guaranty Corporation and United Guaranty Insurance from...

    Job Swaps    16 August 2016
  • Bermudan ILS players 'optimistic'

    Bermudan ILS participants are 'optimistic' that the market will continue to grow and diversify, acco...

    News Round-up    11 August 2016
  • Broker hires for Americas team

    RFIB Group has appointed Glenn Jackson as md of RFIB Americas. He will be based in the firm's Tampa...

    Job Swaps    9 August 2016
  • SCI Start the Week - 8 August

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

    Pipeline A further 11 deals joined the pipeline last week. This was split into three ABS, three RMB...

    News    8 August 2016
  • ILS pro takes new role

    The former head of international capital markets at Aon Securities has moved on to RenaissanceRe, wh...

    Job Swaps    5 August 2016
  • Parametrics firm names ceo

    Global Parametrics has appointed Hector Ibarra as its ceo. Ibarra will lead the new company, which t...

    Job Swaps    2 August 2016
  • SCI Start the Week - 1 August

    A look at the major activity in structured finance over the past seven days. Print last week's news ...

    Pipeline The final week of July brought six new ABS deals to the pipeline, as well as two CMBS and...

    News    1 August 2016
  • AIR to model pandemic ILS

    AIR Worldwide has been chosen by the World Bank Group to model its Pandemic Emergency Financing Faci...

    News Round-up    26 July 2016
  • SCI Start the Week - 25 July

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

    Pipeline Last week's pipeline activity was largely in line with the week before it. There were four...

    News    25 July 2016
  • ILS spreads hit new high

    ILS issuance slowed in 2Q16 from the record-breaking first quarter, with only US$800m in catastrophe...

    News Round-up    22 July 2016
  • ILS lawyer to lead expansion

    Berkshire Hathaway Specialty Insurance (BHSI) has expanded into transactional liability insurance in...

    Job Swaps    22 July 2016
  • ILS lawyer joins Chicago office

    Drinker Biddle & Reath has appointed a new member to its corporate and securities group. The...

    Job Swaps    20 July 2016
  • SCI Start the Week - 18 July

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

    Pipeline Last week's pipeline additions included a decent mix of MBS names. In the end there were s...

    News    18 July 2016
  • Foreign aid ILS mooted

    London Market Group (LMG) has launched a white paper on an ILS solution for catastrophes in under-in...

    News Round-up    14 July 2016