ILS

The reinsurer is planning to accelerate growth in its insurance business.

As new modelling tools emerge, we look at the benchmarks that ILS managers believe are appropriate for long-term stress tests and the shorter-term challenges.

Cat bonds are an efficient and well-targeted answer for insuring charitable spending, according to Adam Bornstein, leader of the team at the Danish Red Cross, which oversaw the issuance of its debut cat bond covering volcanic eruptions.

Reinsurers from Bermuda, the Cayman Islands and Japan have also provided capital to the syndicate for its 1 July launch.

The asset manager has previously invested in ILS via external specialists.

The coverage was obtained by issuing approximately $523mn in bonds and $93mn in direct reinsurance.

The coupon reduced by 50 basis points compared with what was initially marketed to investors.

Constellation Re, a Guernsey-based cell backed by the investment bank, joins eight reinsurers in providing the cover.

Local executives expect the island to weather global reform efforts in light of Bermuda’s other advantages and the time it will take to implement minimum tax levels.

As providers manage their targets by premium dollars, and rising rates have boosted quota share income, this is leading to reinsurers hitting capacity earlier than expected.

Sources suggested the ESG credit for using green collateral is overshadowed by longer-term ambitions for underwriting clarity.

The A rated platform is due to take on renewals from the firm’s 1609 Fund.