ILS
News in brief
The ILS market posted another record quarter in Q2 as investor demand for alternative assets continues to grow and several past issuances matured.
Record Q2
Strong appetite for insurance-linked securities (ILS) issuance during the second quarter of the year has pushed the market to a new “record-breaking” pace, according to Aon Securities’ latest report, with $5.6 billion in new issuance.
The second quarter was always likely to be a strong one given the $4.5 billion in expected maturities. However, investors’ appetite for diversifying and liquid cat bonds meant there was strong demand for new issuance from ILS funds, UCITS funds and global asset managers.
AXIS ILS moves
AXIS Capital Holdings has named a new head of ILS as it rebrands its third-party capital unit as AXIS ILS.
Chris Caponigro took up his position as global head of AXIS ILS on July 22, 2021. He will oversee AXIS’s activities related to third-party capital under management and support efforts across its reinsurance and insurance segments.
Twelve Capital expansion
Twelve Capital has hired two senior distribution specialists to focus on the UK and Benelux/Nordic markets as it seeks to expand its distribution efforts under its new BaFin licence.
Damian Brannan joined Twelve Capital as executive director of distribution for the UK. He has over 20 years’ experience in asset management, across investment, management and sales roles, with a particular focus on alternatives and global equity strategies.
Essent Guaranty XoL
Essent Guaranty, the wholly owned subsidiary of Essent Group, has obtained $557.9 million of fully collateralised, excess of loss reinsurance coverage from Radnor Re 2021-1, the newly formed special purpose insurer in Bermuda.
The reinsurance covers mortgage insurance policies written in August 2020 through March 2021..
Ariel Re cat bond
Ariel Re has sponsored its first 144A index-triggered catastrophe bond issued by Bermuda special purpose insurer Titania Re.
Titania Re is providing $150 million of multi-year collateralised reinsurance cover to Ariel Re using an indexed industry loss trigger, protecting against US-named storms and earthquakes.
Arch MI MILN
Arch Mortgage Insurance Company (Arch MI) has completed its second mortgage insurance linked note (MILN) transaction of 2021.
Arch MI obtained over $616 million of indemnity reinsurance on a pool representing approximately $36 billion of mortgages from Bellemeade Re 2021-2, the special purpose reinsurer.
Hiscox ILS & Re managing partner
Hiscox has named a new managing principal for Hiscox ILS to spearhead the evolution of its ILS offering.
Vincent Prabis takes a place on the Hiscox Re & ILS executive team and reports to Kathleen Reardon, CEO of Hiscox Re & ILS, once his appointment receives Department of Immigration and Bermuda Regulatory approval.
Gallagher Bellemeade deal
Gallagher Re partnered with Arch Mortgage Insurance Company (Arch MI) in raising and placing traditional reinsurance capacity for Bellemeade Re 2021-2, a special purpose reinsurer.
Gallagher Re obtained $93,210,000 of indemnity reinsurance for Arch MI in the second Bellemeade transaction of 2021, on a pool representing approximately $36 billion of mortgages. The mortgages were linked to 123,224 residential mortgage loans issued by Arch MI and affiliates, primarily from December 1, 2020 through to March 31, 2021.
