Over the last couple of years the amount of capital trapped in collateralized reinsurance, retrocession and other insurance-linked securities (ILS) has declined significantly, which makes for a much larger and more impactful ILS capital market than you might think, AM Best rightly points out.
ILS managers have been successful in releasing a lot of capital over the last couple of years, some being paid out for claims, but also a relatively significant proportion has also been released without any loss.
There had been a steady drip of trapped capital released back into managers strategies, or returned to investors. The upshot of which was healthier deployable capital figures and less drag from legacy exposures on ILS manager businesses and returns.
FULL ORIGINAL PUBLICATION HERE
