Program activities, particularly those focused on the property and casualty insurance and reinsurance lines of business, should prove increasingly attractive to investors in insurance-related securities (ILS) over time, as the nature structure’s cash flow benefits them, Shevawn Barder, CEO of AM RE Syndicate told us in a recent interview.
We spoke with Barder, the CEO of managing general agent (MGA) AM RE Syndicate Inc., recently as part of our showcase sponsor video interview series for April 22.n/aArtemis ILS NYC Conference, held in New York.
AM RE Syndicate is one of our Bronze sponsors for the upcoming, sold-out ILS industry event and Barder explained his thoughts on the opportunity for insurance-related securities (ILS) investors in the program sector.
“This business is underwritten with a very low limit, it is well spread and these contracts pay out on a short term, monthly basis, freeing up paid balances for ILS investors to access. It’s a very cash-efficient structure,” Barder explained.
Adding that “these classes should attract more ILS capacity as their terms, conditions and prices continue to be very favorable and with these lines, ILS capacity will increasingly flow into portfolios well positioned for long-term performance.”
Barder said that with rates continuing to tighten in the program business classes underwritten by AM RE, she expects ILS investors to find this opportunity increasingly attractive in 2022 and beyond. .
In addition, there are specific reasons why ILS investors are currently seeking differentiated sources of insurance-related returns, and Barder also pointed to the fact that program activities can be very diverse for experienced ILS grantees.
“With the loss of nat cat posing an ongoing challenge and climate change to consider, we believe ILS investors will seek lower bound exposures with less exposure to nat cat and at AM RE we have developed a model very specific to write this type of business,” she explained.
Barder also said AM RE wanted to find ILS capital partners, support its continued growth as a reinsurance MGA and help it capitalize on its expanding platform.
“For 2022, we are looking to attract new strategic ILS partners, investors to replace lost capacity in certain lines of business and we also plan to launch our licensed E&S carrier, ASI, out of Arizona,” Barder said. .
The full video interview is embedded below and can also be viewed in its entirety, along with previous Artemis Live video interviews here.
You can also listen to our audio interviews in by subscribing to the Artemis Live podcast here.
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