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The once niche insurance-linked securities (ILS) asset class has matured into an influential part of the global reinsurance industry, helped by its solid performance during financial market turmoil and it’s ability to efficiently allocate capital. In a recent paper, Nephila Capital’s Laura Taylor highlighted such benefits of the space.
At more than $75 billion in size, the majority of which comes from either collateralised reinsurance or catastrophe bond transactions, the ILS space is now widely viewed as a permanent and influential part of the re/insurance landscape.
Nephila Capital, the world’s largest ILS fund manager with assets under management (AuM) of around $10 billion has, along with others in the space, witnessed the evolution of the investor base and the overall growth of the market.