Analysis

ILS managers are still waiting for hard market growth.

Analysis by Lane Financial concluded that ILS returns will likely be double-digit-to-high-teens in 2024.

With more ILS managers chasing the popular bond space, how will new operators differentiate themselves?

A strong outlook for sidecar profits in 2023 is rebuilding investor confidence but one to three years of good performance will be needed to sustain it more fully.

Experts at the Trading Risk New York conference emphasised in-built cyber risk protections from defences to exclusions, as ILS managers grapple with understanding the peril.

Cat bond investors are sufficiently capitalised to fulfil demand from an anticipated strong pipeline of new issuance in Q4. 

ILS capacity in the form of retained earnings and new inflows is shaping up to meet growing demand for reinsurance and retro coverage.

The broker studied the impact of 14 major cyber events in its attempt to dispel ILS manager fears of a ‘double whammy’ cyber event that would also impact financial markets.

The supply-demand dynamics are all pointing in ILS markets’ favour, so long as hurricane season goes quietly.

The ratings agency has said ILS firms could encounter “pent-up demand” from cedants during the January 2024 renewal.

Hurricane Idalia is still live, but the storm’s track reassured market participants that it will be a relatively minor loss.

If the assets of the cell form part of the Vesttoo estate, this may impact the priority of returning associated capital to cedants.