Artemis Live - Insurance-linked securities (ILS), catastrophe bonds (cat bonds), reinsurance 56: ILS market conditions & ESG priorities - Leadenhall Capital Partners
Mar 22, 2021
28:56
For our latest Artemis Live video interview we spoke with specialist insurance-linked securities (ILS) fund manager Leadenhall Capital Partners' CEO Luca Albertini and CUO Jillian Williams, who gave us an update on their view on the ILS and reinsurance market and also explained more about environmental, social and governance (ESG) activities at the firm.
We began by discussing the state of the market and Chief Executive Officer of Leadenhall Luca Albertini explained that, in January, property catastrophe pricing improved and importantly, so too did terms.
Albertini also highlighted the life ILS side, where his firm provides reinsurance and financing capital to life insurers and reinsurers, saying that there could be an opportunity emerging here related to the COVID-19 pandemic.
"We believe that there will be a higher interest in pandemic cover and life cover in general, so something that can be structured to meet this additional appetite is something clearly we are working on and the industry is working on," Albertini explained.
He cited the "potential for rekindling interest on a sector like pandemic," which he said for capital market players has been in slow decline.
Williams discussed the upcoming reinsurance renewals, saying that, "The 1/4's have been positive and the Japanese renewals have again shown a positive discussion on rate and good interaction between clients and brokers on structures and what they need for them, as well as what we're able to do in the market."
However, Williams noted that looking ahead to the mid-year renewals, the recent winter storm Uri has focused attention on so-called secondary perils again and has also heightened uncertainty around reinsurance renewal timings.
The interview went on to explore environmental, social and governance (ESG) activities at Leadenhall Capital Partners and the pairs thoughts on what more the ILS industry needs to do so it can ensure it is ready to capitalise on investor preference and demand.
We began by discussing the state of the market and Chief Executive Officer of Leadenhall Luca Albertini explained that, in January, property catastrophe pricing improved and importantly, so too did terms.
Albertini also highlighted the life ILS side, where his firm provides reinsurance and financing capital to life insurers and reinsurers, saying that there could be an opportunity emerging here related to the COVID-19 pandemic.
"We believe that there will be a higher interest in pandemic cover and life cover in general, so something that can be structured to meet this additional appetite is something clearly we are working on and the industry is working on," Albertini explained.
He cited the "potential for rekindling interest on a sector like pandemic," which he said for capital market players has been in slow decline.
Williams discussed the upcoming reinsurance renewals, saying that, "The 1/4's have been positive and the Japanese renewals have again shown a positive discussion on rate and good interaction between clients and brokers on structures and what they need for them, as well as what we're able to do in the market."
However, Williams noted that looking ahead to the mid-year renewals, the recent winter storm Uri has focused attention on so-called secondary perils again and has also heightened uncertainty around reinsurance renewal timings.
The interview went on to explore environmental, social and governance (ESG) activities at Leadenhall Capital Partners and the pairs thoughts on what more the ILS industry needs to do so it can ensure it is ready to capitalise on investor preference and demand.