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For ILS funds, the challenge is not raising too much capital: Vickers, Gallagher Re

While conditions are attractive for insurance-linked securities (ILS) markets right now and as a result ILS fund returns have been impressive, James Vickers, Chairman International, Reinsurance, at Gallagher Re cautioned that managers must be careful not to raise too much new capital.

ILS fund managers are experiencing increasing demand from investors, while investor interest is continuing to grow and also expand, with evidence of numerous new allocators assessing the ILS space at this time.

This has been driven by the much higher return-potential of ILS investments, thanks to higher reinsurance pricing and much-improved terms for capital deployment into reinsurance and retrocession, as well as catastrophe bonds.


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