HVRRY - Alleghany CEO Warns Re/insurers Not To Chase The ILS Tail (Risk)
Weston Hicks, the President of the Alleghany (Y) insurance, reinsurance and investment group, has warned re/insurers that provide fronting and transformation services to the ILS and collateralized market to beware of being left holding the tail risk.
Hicks has a record of highlighting any potential issues he sees related to the ILS market in his annual shareholders letter, such as back in 2017 when he likened alternative reinsurance capital to Frankenstein's monster.
In this year's letter, Hicks again warns of a possible unforeseen negative outcome related to ILS, warning that major re/insurers who choose to