Bermuda (Re)Insurers Face Margin Pressure but Maintain Strong Returns in 2025
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts
ILS transaction reviews focuses on Insurance-Linked Securities. These securities are financial instruments where the returns are linked to insurance-related risks, such as natural disasters or other large-scale insurance claims. ILS transactions typically involve the issuance of bonds or notes that investors buy, and the proceeds are used by insurers or reinsurers to cover specific risks. In return, investors receive interest payments and, in some cases, principal repayments if the covered risks do not materialize.
The category covers various aspects of ILS transactions, including market trends, deal structures, risk management, and investment performance. It provides insights into how ILS transactions fit within the broader insurance and financial markets, highlighting their role in risk diversification and capital management.
By focusing on ILS transactions, Beinsure Media offers valuable information to industry professionals and investors interested in understanding the complexities and opportunities within this niche financial sector.
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts
The insurance-linked securities (ILS) market hit $107 bn in capacity by the end of 2024, driven by strong investor returns and increased catastrophe bond issuance
Changes to reinsurance-related capital requirements proposed by the Australian Prudential Regulation Authority strengthen Australian general insurers’ credit profiles
Catastrophe bond issuance set records in three of the past four quarters, pushing the market to $45.6 bn—an 18% rise
The property catastrophe bond market supported new and repeat insurance, reinsurance and government sponsors
ILS plays a key role in allowing catastrophe risk to be transferred from the commercial insurance market to investors, providing additional (re)insurance capacity
According to Artemis, catastrophe bond and related insurance-linked securities (ILS) issuance fell when compared with the prior year quarter
Investors in ILS are seeking innovation—they may find it in Africa where a combination of transnational bodies, better data and a desire to structure improved disaster relief
The increased use of new forms of risk transfer in the cyber reinsurance market to have renewed discussions about the potential role Insurance-Linked Securities (ILS)
Increasing demand for cyber re/insurance have made the need for fresh risk capital acute. With insurance linked securities (ILS) market, re/insurers may be change