Life ILS Ecosystem Gareth Mee Partner | EY ELSA-SLS.ORG - - PowerPoint PPT Presentation

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Apr 03, 2023 410 likes •474 views

Life ILS Ecosystem Gareth Mee Partner | EY ELSA-SLS.ORG INFO@ELSA-SLS.ORG Consider Life ILS through three lenses Investment Capital Liability provision transfer ELSA-SLS.ORG INFO@ELSA-SLS.ORG Investment A wave of new capital providers

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ELSA-SLS.ORG INFO@ELSA-SLS.ORG

Life ILS Ecosystem Gareth Mee

Partner | EY

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ELSA-SLS.ORG INFO@ELSA-SLS.ORG

Consider Life ILS through three lenses

Investment Liability transfer Capital provision

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ELSA-SLS.ORG INFO@ELSA-SLS.ORG

A wave of new capital providers take interest in insurance

Apollo lists US insurance vehicle Athene and creates European entity Athora

Investment Liability transfer Capital provision

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ELSA-SLS.ORG INFO@ELSA-SLS.ORG

A tough market in which to make returns – UK example

Gilt curve Swap curve Social housing loan Infrastructure Loan CRE loan Private placement loan Student housing loan CMBS AA UK RMBS AAA

Res. Mortgage

Loan Aviation bond Equity release mortgage loan Student loan AAA corporate bond AA corporate bond A corporate bond BBB corporate bond Trade finance 0% 1% 2% 3% 4% 5% 5 10 15 20

Returns p.a. Indicative Modified Duration

Source: EY proprietary analysis based on template from IFOA

Infrastructure loans Real estate backed loans Other asset backed securities Other unsecured assets

Investment Liability transfer Capital provision

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ELSA-SLS.ORG INFO@ELSA-SLS.ORG

Competition is high; capital ratios are misleading

Investment Liability transfer Capital provision Source: IMF World Insurance report 2018 Source: EIOPA statistics