Even in a state of increased event activity driven by a changing climate, allocating to insurance-linked strategies (ILS) can generate attractive returns for investors, according to a whitepaper from LGT ILS Partners, the specialist dedicated ILS investment unit of the private bank and asset manager LGT Capital Partners.
LGT ILS Partners’ paper observed that, in 2023, ILS investors benefited from very attractive return momentum, driven by a much higher premium environment, coupled with a revised portfolio allocation strategy that mitigated loss impacts to a significant extent.
“ILS managers adjusted their strategies by reducing frequency covers and by focusing on risk-remote transactions, mainly concentrating on single, extreme catastrophe events,” the paper explained.
FULL ORIGINAL PUBLICATION HERE
