ILS & cat bond market stabilised in 2015
Wednesday, 02 03 2016, Category: Insurance and Reinsurance, Country: World
Stabilisation in terms of growth and pricing was evident in the ILS market during 2015, as rates remained at levels witnessed in 2014, says Munich Re. But with a high volume of maturities expected in the first-half of the year, will investor and sponsor appetite be sufficient to maintain sector growth?
Investor appetite for insurance-linked securities and catastrophe bond transactions remained strong in 2015 on the back of a record-breaking year for issuance in terms of capital. Reluctance from investors to reduce their minimum return requirements, notes reinsurance giant Munich Re, resulted in pricing staying at levels seen in 2014, and “did not tighten further.”
A notion that supports recent industry commentary underlining the growing maturity, sophistication, and understanding of the asset class, from both investors and sponsors, and also suggests a current trend of stabilisation in both growth and pricing.