Strong demand continues in Bermuda ILS sector: PwC

By added on 07/03/2014

The Insurance Linked Securities [ILS] sector continues to see strong demand from investors as an alternative asset class – and the long-term trend is towards further growth in third-party capital in reinsurance, according to PwC, reports Bernews.

Analysis conducted by PwC indicates that third-party capital is there as part of long-term diversification strategies and not because it’s starved of yield elsewhere.

Attending the SIFMA [Securities Industry & Financial Markets Association] annual Insurance and Risk Linked Securities Conference in New York this week, Scott Watson-Brown [pictured], Alternative Investments Leader, PwC Bermuda, said, “We are seeing continuing capital markets interest in reinsurance and alternative risk transfer in 2014. Existing investors are putting more money to work and we are aware of a number of new investors progressing through their due diligence programmes to participate in this blossoming asset class.”