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No oversupply of ILS capital expected, as returns come into focus: JPM

There is unlikely to be an oversupply of alternative reinsurance capital or insurance-linked securities (ILS) capacity in the near-term, as the ILS segment of the re/insurance industry focuses on delivering returns to its investors, according to analysts at J.P. Morgan.

In a new report, equity analysts from investment bank J.P. Morgan explain that they regularly get asked by investors about the “wall of money” sitting on the sidelines and waiting to come into the market.

But, given recent history and current market dynamics, the analysts say they aren’t concerned that a new influx of alternative capital and ILS funding will flow into reinsurance and soften rates.


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