ILS managers

In a discussion at Trading Risk’s London ILS 2023 conference, panellists compared the current cyber ILS market to the cat market in the 1990s.

The firm noted that investor pushback at the January renewal had resulted in "the cleanest risk" being transferred to the capital markets.

UBS previously explored setting up an ILS offering, but instead opted to offer other firms’ products.

There are enough drivers supporting the trend for cat bond segment growth that ILS managers are likely to be plugging this business heavily in the short term, even if it is less attractive in fee yield.

The syndicate’s combined ratio was down for the fifth year in a row.

ILS managers have pioneered externally managed rated carriers, but have done so with cost-consciousness in mind.

The aim is to launch a casualty ILS product that would enable Saudi investors to access US casualty risk.

The casualty ILS fund has been on a hiring spree since its $75mn Series B fundraise in June last year.

The ILS manager said the cat bond sector could double to become a $70bn market in the next three to five years.

The asset manager said this year’s conditions were the most attractive in ILS history.

Hudson Structured Capital Management (HSCM) Bermuda has set up an insurance credit strategy seeded with $400mn of initial capital from Security Benefit Life Insurance Company.

Structures have been developed that would avoid “excessive capital trapping”.