Investor optimism remains strong for catastrophe bonds and reinsurance sidecars, but when it comes to collateralized reinsurance that optimism still lags, but institutional investors are positively working to address issues that have made allocating fresh capital more of a challenge in private ILS and collateralized reinsurance, according to Artex.
Overall, the Artex View on alternative capital markets in reinsurance is positive, but the service provider does still see hesitance among institutional investors when it comes to allocating to private collateralized reinsurance deals and certain structures within the insurance-linked securities (ILS) space.
Long-term sustainability of ILS investor relationships is a focus among sponsors and those delivering partner capital solutions, being prioritised over short-term gains, Artex explained in its latest report.
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