ILS market returns could be hit by further natural catastrophe losses


ILS market returns could be hit by further natural catastrophe losses

Guido Amrein Switzerland /

Natural disasters in the second half of this year could have a serious impact on the returns generated by the insurance-linked securities (ILS) and reinsurance-linked investment markets in 2016, according to a panel of industry figures. Intelligent Insurer reports

Speaking at the Guernsey Finance-hosted ‘ILS Insight’ masterclass in Zurich in July, Des Potter, head of GC Securities, EMEA, told the audience that three sizeable events in the first half of this year had created a scenario where further disasters, such as hurricanes, in the latter part of 2016 could lead to losses being incurred by some ILS funds.

‘ILS Insight’ was held at the Park Hyatt Zurich and attracted more than 100 delegates from across the insurance, asset management and wealth management and adviser communities. It consisted of two panel sessions featuring ILS experts from Guernsey, the UK and mainland Europe and a keynote speech from Dirk Lohmann, chairman and managing partner of Secquaero Advisers AG. It was the second time that the annual event had taken place in Zurich, having moved to London last year.

The first panel session focused on the rise of ILS and examined current themes in the market, the appetite for ILS among investors, rated reinsurers and the impact of Solvency II.

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Intelligent Insurer