LOGIN
 

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.


  • 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
  • Slow start

    European ABS and CLO market update

    The European ABS market is experiencing its “slowest start to a year since 2011”...

    Market Reports    23 January 2019
  • Latest SCI podcast available

    SCI podcast episode four is now live

    SCI’s latest podcast is now live. This month the team round up asset class performance fro...

    News    21 January 2019
  • SCI Start the Week - 14 January

    A review of securitisation activity over the past seven days

    Transaction of the week BBVA has completed an innovative transaction that synchronises credit event...

    News    14 January 2019
  • SCI Start the Week - 17 December

    A review of securitisation activity over the past seven days

    Market commentary European CMBS BWIC activity swelled after the Taurus 2018-3 DEU deal priced last...

    News    17 December 2018
  • Concerns ignited

    Wildfire peril pricing questioned

    ILS market participants are re-evaluating whether the pricing of wildfire risk in catastrophe bonds...

    News Analysis    13 December 2018
  • SCI Start the Week - 3 December

    A review of securitisation activity over the past seven days

    Market commentary European ABS activity remained subdued last week, with spreads drifting wider, du...

    News    3 December 2018
  • Sweet spot

    Multi-arrangement ILS vehicle debuts

    Brit has launched Sussex Capital UK, the first vehicle to be given permission by the PRA under the U...

    News    23 November 2018
  • Long goodbye

    First non-Libor linked ABS anticipated

    Lloyds became the first bank to issue a benchmark covered bond tied to the sterling overnight index...

    News Analysis    20 November 2018
  • Fixed income head hired

    Company hires and sector developments in structured finance

    Newmark Group has established an operating committee consisting of key senior managers following the...

    Market moves    19 November 2018
  • SCI Start the Week - 19 November

    A review of securitisation activity over the past seven days

    Market commentary Pepper Group is prepping an Australian RMBS that is expected to include a short U...

    News    19 November 2018
  • STS documents released

    Sector developments and company hires in structured finance

    ILS Hiscox has made three new appointments to its ILS division. Mike Schindel has been promoted to...

    Market moves    16 November 2018
  • CLOs in demand

    Quarterly SCI data update

    Analysis of SCI's databases underlines the significant demand for CLO paper seen in 3Q18, in...

    News Analysis    23 October 2018