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.

  • 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
  • SCI Start the Week - 17 August

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

    Pipeline There were fewer additions to the pipeline last week than there had been the week before....

    News    17 August 2015
  • ILS chief replaced

    Adam Szakmary has been appointed ceo and portfolio manager of Blue Capital Management. He replaces B...

    Job Swaps    17 August 2015
  • SF head preps new firm

    Michael Millette is set to launch Hudson Structured Capital Management following his departure from...

    Job Swaps    17 August 2015
  • ILS unit revamped

    Munich Re has established a new unit within its special and financial risks division. Launched in Ju...

    Job Swaps    14 August 2015
  • Sirius sold off

    White Mountains Insurance Group has agreed to sell Sirius International Insurance to CM Internationa...

    Job Swaps    13 August 2015
  • Capacity gains

    ILW supply and demand picking up

    The ILS secondary market continues to see price volatility in non-peak risks, but certain peak catas...

    News Analysis    13 August 2015
  • Annual margin results published

    ISDA has released its latest survey on OTC derivatives margin activity, revealing...

    News Round-up    12 August 2015
  • ILS team formed

    Lombard Odier Investment Managers (LOIM) has recruited an ILS team that includes Gregor Gawron, Simo...

    Job Swaps    10 August 2015
  • SCI Start the Week - 10 August

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

    Pipeline Pipeline activity picked up again last week, with significant ABS additions. There were...

    News    10 August 2015
  • Mortgage insurance cat bond closed

    AIG's mortgage insurance business United Guaranty Corp (UGC) has completed a novel ILS that funds US...

    News Round-up    7 August 2015
  • Structured products pair recruited

    Schulte Roth & Zabel has hired Boris Ziser and Thomas Weinberger as partners in the...

    Job Swaps    7 August 2015
  • EXOR wins PartnerRe battle

    EXOR has agreed to acquire PartnerRe at approximately US$6.9bn, ending a long-standing bidding war w...

    Job Swaps    4 August 2015
  • Insurance risk project set up

    Vanbridge holdings has made a capital investment in Atlas General Holdings as part of a new partners...

    Job Swaps    3 August 2015
  • Reinsurer taps into Asia

    TigerRisk Partners has established its first presence in Asia by opening an office in Hong Kong. Sub...

    Job Swaps    3 August 2015
  • SCI Start the Week - 3 August

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

    Pipeline The pace of deals joining the pipeline slowed last week. At the final count there were 11...

    News    3 August 2015
  • Montpelier purchase approved

    Endurance Specialty Holdings says it has received all regulatory approvals required in connection wi...

    Job Swaps    31 July 2015
  • Cyber-catastrophe linked securities mooted

    A new Z/Yen Group report explores how a public-private cyber-catastrophe reinsurance scheme could he...

    News Round-up    29 July 2015
  • Hiking cycle history considered

    As the likely Fed rate hike date draws nearer, Barclays ABS analysts have examined the performance o...

    News    28 July 2015
  • SCI Start the Week - 27 July

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

    Pipeline The pace of pipeline additions was steady last week, although there was more variety in th...

    News    27 July 2015
  • ILS team reinforced

    SCOR Investment Partners has recruited Sidney Rostan and Pierre Mouilhade as portfolio managers for...

    Job Swaps    24 July 2015