Sustainability of capital is key - Luca Albertini, Leadenhall Capital Partners

Episode 100,   May 10, 2022, 12:54 PM

Luca Albertini, CEO of specialist insurance-linked securities (ILS) investment manager Leadenhall Capital Partners joined us to discuss the state of the ILS market as the key mid-year reinsurance renewals were approaching.

This new Artemis Live interview from May 2022 is with Luca Albertini, CEO of specialist insurance-linked securities (ILS) investment manager Leadenhall Capital Partners. 

Albertini joined us to discuss market conditions in insurance-linked securities (ILS) and catastrophe bonds, as the mid-year reinsurance renewals approach. 

He explained that there are multiple forces affecting the ILS and cat bond sector, but also that the legacy effects of softened terms and conditions are important to rectify. 

Albertini noted that there has been "a lot to distract investors" and allocators, with multiple external factors from the situation in Ukraine, to inflation and rate rises having knock-on effects on the ILS market this year. 

But these factors have also been one driver of recent catastrophe bond spread widening, on which Albertini said, "I hope it lasts for a while, because that is an embedded higher return for the investors." 

Albertini went on to discuss the upcoming reinsurance renewals, the prospects for both cat bonds and collateralized reinsurance, as well as the need for ILS fund managers to focus on the sustainability of capital.