Some investors have started to experience benefits from the outperformance of investments in the private reinsurance segment compared to catastrophe bonds, after softening of pricing had been seen in the second quarter, Pascal Koller Partner and Portfolio Manager at LGT ILS Partners Ltd., recently commented.
Speaking with Artemis in an interview around the reinsurance conference season Koller stated: “The market for cat bonds was able to absorb a significant volume of additional transactions in the course of the first half year of 2024. There was therefore a healthy increase in capacity in the cat bond segment, and as a consequence, pricing for new bonds has seen a softening in Q2.
“This allowed protection buyers to place bonds in the market at more attractive prices compared to the traditional reinsurance segment.
FULL ORIGINAL PUBLICATION HERE
