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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.


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

    PipelineA mix of ABS, RMBS and CMBS hit the pipeline last week. There were US$1bn-plus deals announc...

    News    24 July 2017
  • Job swaps round-up - 21 July

    Acquisitions BGC Partners has acquired commercial real estate finance company Berkeley Point Financ...

    Job Swaps    21 July 2017
  • SCI Start the Week - 17 July

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

    Pipeline Pipeline activity stepped up again last week. The additions consisted of eight ABS, an I...

    News    17 July 2017
  • Job swaps round-up - 14 July

    North America Mortgage Capital Trading has hired Bill Berliner to the newly created role of direct...

    Job Swaps    14 July 2017
  • Generali launches cat bond first

    GC Securities has priced the first 144A catastrophe bond that provides indemnity protection against...

    News    13 July 2017
  • SCI Start the Week - 10 July

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

    Pipeline Pipeline activity picked up a little last week, but remained fairly muted. Additions con...

    News    10 July 2017
  • SCI Start the Week - 3 July

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

    PipelineOnly a handful of transactions remained in the pipeline last week. Of these, RMBS accounted...

    News    3 July 2017
  • IBRD debuts pandemic cat bonds

    The World Bank has launched US$320m pandemic catastrophe bonds, with the aim of providing financial...

    News    30 June 2017
  • SCI Start the Week - 26 June

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

    PipelineA mix of new deals - both in terms of collateral type and jurisdiction -...

    News    26 June 2017
  • SCI Start the Week - 19 June

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

    Pipeline A rush of ABS deals joined the pipeline last week, picking up from the limited activity of...

    News    19 June 2017
  • Treasury reports on regulatory impact

    The US Treasury has issued a first report in a series regarding regulation of the financial system i...

    News    15 June 2017
  • Prosecutors probe valuations process

    US prosecutors, after years spent studying the sell-side, appear to be turning their attentions to t...

    News Analysis    14 June 2017
  • SCI Start the Week - 12 June

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

    Pipeline It was another week of limited pipeline activity, although several CMBS have been announce...

    News    12 June 2017
  • CHOICE Act passes in House

    The US House of Representatives has passed the Financial CHOICE Act. The legislation aims to replace...

    News    9 June 2017
  • SCI Start the Week - 5 June

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

    Pipeline With many market participants decamping to Barcelona this week for the industry conference...

    News    5 June 2017
  • CEA completes its largest ILS yet

    The California Earthquake Authority (CEA) has completed its largest ever ILS (see SCI 22 May). The U...

    News    24 May 2017
  • Investors overweight RMBS

    Investors are moving out of consumer ABS and into US non-agency RMBS, agency RMBS and cash, accordin...

    News    23 May 2017
  • Global interest in Euro SF surges

    The number of investors in European securitisations is ramping up and transactions are increasingly...

    News    22 May 2017
  • SCI Start the Week - 22 May

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

    Pipeline There were 11 ABS deals added to the pipeline last week. These were joined by an ILS, six...

    News    22 May 2017
  • Regulatory proposal for SPVs 'credit negative'

    Proposed European regulatory changes to classify SPVs as financial counterparties have created signi...

    News    19 May 2017
  • SCI Start the Week - 15 May

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

    Pipeline There was a bit more variety to the pipeline's additions last week, although ABS once agai...

    News    15 May 2017