So far, global reinsurance company Swiss Re is not seeing a significant recovery in capital flows into alternative capital and insurance-linked securities (ILS) structures, but its chief financial officer John Dacey said today that “slight growth” was possible.
It is important to note that Dacey was talking about the possibility of more capital being invested in reinsurance, attracted by the much higher rates available and returns are provided by companies such as Swiss Re.
Dacey explained during a media call regarding Swiss Re’s results this morning that so far no significant influx of new funding from alternative capital investors has been seen in the reinsurance sector.
He said: “At present, there has not been a significant influx of external capital into the industry in any significant way. »
Dacey went on to explain: “We actively participate in what is sometimes referred to as the alternative capital market segment. »
He adds: “This is a space where the amount of capital deployed has been stagnant for about three years, partly because people have had to take significant losses over the last five years and partly because of other opportunities to investment. »
But he seems a little more optimistic about the long-term prospects for capital inflows into alternative reinsurance capital and ILS structures.
Dacey commented: “I think at some point there might be some slight growth. But we haven’t seen that improve significantly, in the space in which we’re active.
Of course, Swiss Re has expanded the assets under management of its own alternative capital platform. to $4.3 billion by the middle of this year, including $3 billion from third-party investors.