The M&A trend being seen within the re/insurance market will reach the ILS funds as the smaller players fight to stay relevant, Paul Schultz, CEO, Aon Benfield Securities tells Intelligent ILS.
The ILS market is likely to mirror the trend of mergers & acquisitions (M&A) that is currently being seen in the re/insurance industry, as ILS funds seek to broaden their capabilities for clients.
“Many clients value the ability to trade with 25 partners, rather than just five, but a larger balance sheet can lead to greater innovation around products for clients. If you take the same theory and apply that to the insurance-linked securities (ILS) side, then I think it makes sense to consolidate,” says Paul Schultz, CEO, Aon Benfield Securities.
However, Schultz explains, the reasons to consolidate must be relevant to business being written in a different way and in a different form rather than just to increase the size of transactions.
ILS, M&A, Paul Schultz