Collateralised reinsurance

The transaction builds on a $1.15bn first-of-its-kind hybrid bank and ILS capital deal in April last year.

For the ILS market, perhaps more than any other, the outcome of this year’s high inflation is still to be determined. Unlike other industries that are suffering increased immediate costs, this sector’s performance – as always – is ultimately driven by events no one can foresee.

The bond will provide coverage up to 2026, extendable to 2029.

The fund will take a vertical cut of all non-life business written by Latam specialist Ocean Re.

The firm’s founder said he originated and structured 70% of all ILS deals issued for Japanese perils in the past 12 years.

Hurricane Ian could present a challenge for ILS fundraising conversations this autumn if ILS firms do not find more financing solutions to manage trapped capital, according to panellists at Trading Risk New York 2022 last week.

The Sompo International company was placed into run-off in June 2019.

The state-backed carrier bought two-thirds of its programme in the collateralised market.

The agency said casualty risk was attractive to investors for its low-to-moderate correlation.

The decade from 2010 ran the full gamut of catastrophe loss experience, reminding us that there is no such thing as a "new normal" in the world of ILS.

The firm aims to build on the origination capability of Fleming Re and Accelerant.

One of the ongoing trends within the ILS market over past years has been an increasing demand from existing investors to look for something different within their portfolio.