HVRRF - Varying Pandemic ILS Impacts Trapped Capital May Be Held For Years: A.M. Best
Rating agency A.M. Best said that varying pandemic-related impacts are to be expected for the insurance-linked securities (ILS) market, with the most concerning likely the fact that collateral could be trapped for years given the significant uncertainty over potential losses.
There have already been a range of impacts seen in the ILS and catastrophe bond market, from the initial sell-off of cat bonds by generalist investors such as multi-asset managers, to the initial marking down of certain positions in portfolios of collateralised reinsurance and retrocession as ILS fund managers try to identify where losses could