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.


  • 'Atypical' ILS issuance tallied

    At 20 transactions, 2016 saw the fewest number of catastrophe bonds brought to the market since 2009...

    News    7 February 2017
  • SCI Start the Week - 6 February

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

    Please noteFrom today, we will be sending out stories as soon as they are published. They will appea...

    News    6 February 2017
  • Horse Capital leading the way?

    The recently-issued Horse Capital I catastrophe bond is further evidence of the ILS market continuin...

    News Analysis    6 February 2017
  • OTPP promotes ILS leader

    Ontario Teachers' Pension Plan has promoted Gillian Brown to md for credit, ILS and equity products....

    Job Swaps    2 February 2017
  • UK ILS consultation launched

    The UK FCA has launched a consultation on proposed changes to its Handbook to reflect the new regula...

    News Round-up    1 February 2017
  • LCP board bolstered

    Ly Lam has been appointed to the management board of Leadenhall Capital Partners as a representative...

    Job Swaps    31 January 2017
  • ILS 'difficult to understand'

    A recent Clear Path Analysis survey of 100 institutional asset allocators finds that 22% are very li...

    News Round-up    30 January 2017
  • SCI Start the Week - 30 January

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

    Pipeline Additions to the pipeline started to pick up pace last week. There were seven ABS and eigh...

    News    30 January 2017
  • SCI Start the Week - 23 January

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

    Pipeline There was a clear skew towards auto ABS additions for the pipeline last week. As...

    News    23 January 2017
  • ILS firm launched

    A new alternative asset management firm focused on ILS investments has been founded in Tel Aviv. Dub...

    Job Swaps    18 January 2017
  • ILS firm placements head appointed

    XL Catlin has appointed Anne Middleton as global head of placements, ceded reinsurance. Middleton wi...

    Job Swaps    17 January 2017
  • Weather risk platform introduced

    Speedwell Weather has launched its weatherXchange platform, which aims to help companies access inde...

    News Round-up    16 January 2017
  • SCI Start the Week - 16 January

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

    Pipeline There were a few more additions to the pipeline last week. The final count consisted of tw...

    News    16 January 2017
  • Tradewynd bonds affirmed

    Fitch has affirmed the Tradewynd Re Series 2014-1 class 3A and 3B notes, which are expected to matur...

    News Round-up    11 January 2017
  • SCI Start the Week - 9 January

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

    Pipeline The first week of the year brought a return to life for the pipeline. There were two new A...

    News    9 January 2017
  • Aeolus acquisition closed

    Elliott Management Corp funds Elliott Associates and Elliott International have acquired a controlli...

    Job Swaps    9 January 2017
  • Insurer inks rival buyout

    Arch Capital has completed its acquisition of United Guaranty Corporation (UGC) from Americ...

    Job Swaps    6 January 2017
  • Larger cat bonds proliferating

    Nearly US$2bn in catastrophe bonds was issued in 4Q16, according to PCS figures. The size of three o...

    News Round-up    5 January 2017
  • Capital markets platform launched

    Liberty Mutual Insurance has created a new capital markets platform. Dubbed Limestone Capital Market...

    Job Swaps    21 December 2016
  • Contingent capital arranged

    SCOR has launched its third contingent capital facility in the form of a three-year contingent equit...

    News Round-up    19 December 2016
  • Insurance merger agreed

    Fairfax Financial Holdings and Allied World Assurance Company Holdings have entered into a merger ag...

    Job Swaps    19 December 2016