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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.


  • Agency proposes new rating type

    S&P has issued a request for comment on its proposed criteria for assigning a new rating typ...

    News Round-up    1 October 2015
  • Fund liquidity proposals weighed

    Last week, the US SEC voted to propose tighter liquidity rules for open-end funds, including mutual...

    News    29 September 2015
  • SCI Start the Week - 28 September

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

    Pipeline The pace of deals joining the pipeline continued to slow last week. In all, there were thr...

    News    28 September 2015
  • UK ILS proposals promoted

    The London Market Group (LMG) has provided an update on its work towards improving...

    News Round-up    25 September 2015
  • ILS legal pro recruited

    Michael Halsband has joined Drinker Biddle & Reath as part of its insurance transactional an...

    Job Swaps    22 September 2015
  • SCI Start the Week - 21 September

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

    Pipeline Fewer deals joined the pipeline last week. At the final count there were three new ABS, tw...

    News    21 September 2015
  • Strategic partnership formed

    OppenheimerFunds has formed a strategic partnership in which Apollo Credit Management will serve as...

    Job Swaps    21 September 2015
  • Structuring head recruited

    Peter Nowell has joined SCOR as global head of structuring - financial solutions. He is tas...

    Job Swaps    17 September 2015
  • Capital solutions unit launched

    Tokio Millennium Re (TMR) has established a capital solutions unit, tasked with developing new capit...

    Job Swaps    16 September 2015
  • ILS vehicle launched

    Hiscox Re has launched Cardinal Re, a Bermuda-based special purpose insurer designed to transform co...

    Job Swaps    15 September 2015
  • SCI Start the Week - 14 September

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

    Pipeline It was another active week for the pipeline, with four new ABS and six CMBS added. There w...

    News    14 September 2015
  • Reinsurer hires for ILS push

    Sequant Re has hired Victor Baillargeon as chief underwriting officer. He is tasked with leading the...

    Job Swaps    11 September 2015
  • Non-cat ILS vehicle launched

    Vario Partners and Guy Carpenter have teamed up to form a new ILS investment vehicle and fund that f...

    Job Swaps    10 September 2015
  • CATCo assets sold

    Markel is set to acquire CATCo Investment Management's assets in a deal that is expected to...

    Job Swaps    10 September 2015
  • SF practice recruits trio

    Schulte Roth & Zabel has expanded its structured finance practice by adding Boris Ziser and&...

    Job Swaps    10 September 2015
  • UK insurer set to be sold

    Mitsui Sumitomo Insurance is set to acquire Amlin for approximately £3.47m. As part of the...

    Job Swaps    8 September 2015
  • SCI Start the Week - 7 September

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

    Pipeline Last week six ABS, five RMBS, one CMBS and two CLOs were added to the pipeline. The CMBS w...

    News    7 September 2015
  • SCI Start the Week - 24 August

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

    Pipeline Primary market activity was limited last week, with three new ABS and a single CLO added t...

    News    24 August 2015
  • APAC ILS issuance to rise

    Fitch expects catastrophe bond issuance to increase in Asia-Pacific - particularly for catastrophe-p...

    News Round-up    24 August 2015
  • ILS underwriting scrutinised

    The reinsurance sector is adapting to the influx of alternative capital by providing innovative solu...

    News    19 August 2015
  • ILS upgraded on sponsor action

    S&P has raised its credit ratings on Avondale Securities class A1 and A2 notes from double-B...

    News Round-up    19 August 2015