The transfer of longevity and mortality risks to the capital markets remains a relatively small activity compared with billions of property catastrophe risk transferred annually through collateralised re/insurance structures and insurance-linked securities (ILS).
But within the life ILS space, there are experts with rare skills that are working hard to pioneer transactions: none more than Securis, whose life ILS team has won this category for the fourth year in a row.
Since its inception in 2005, Securis has firmly established itself as an ILS fund manager. Its life funds under management have grown consistently – and trebled in the last three years – by sticking to its core principles of investing in risks in the life and heath sectors from an "insurance risk perspective with a capital market mindset".
This approach is particularly timely especially in light of the current fixed income markets, as well as a diversifier from the better known natural catastrophe market. In this context, Securis says ILS investors are seeking to diversify their interests in areas providing predictable but attractive returns.
Securis differentiates itself by focusing on complex, privately sourced financing, risk management and regulatory capital solutions.
Among the solutions the firm has devised are commission financing, designed to assist an insurer suffering from capital strain whenever a new policy is sold, by providing loans that are repayable out of profits from the insurer's closed life book.
Other offerings include de-risking of longevity and lapse de-risking in light of Solvency II requirements, designed to help insurance counterparties optimise their capital. Offerings are also designed to accommodate current IFRS requirements as well as IFRS 17 when it's implemented.
In the last year, Securis has closed an innovative longevity swaption and it continues to explore new geographies and new, non-traditional counterparties.
Luca Tres, partner of the Life Team, commented: "We are very honoured to receive this award for the fourth year in a row. It is a testament to our efforts and track record in bringing highly customised and innovative solutions to the insurance capital management, financing and de-risking space.
"We know it is just the beginning of a long path, but we are now starting to see the results across our various areas of interest, from embedded value/commission financing to the much more sophisticated longevity, lapse and, more generally, regulatory capital and IFRS solutions."
