After a successful 2023, the insurance-linked securities sector needs to show it can produce sustained returns on equity to its investors, according to Kathleen Faries.
The chief executive officer of Bermuda:Re+ILS company of the month Artex Capital Solutions, said the sector saw large capital inflows from “opportunistic” investors in 2023 and now needs to sow underwriting discipline to make sure they continue to put their capital into ILS.
“2023 was an interesting year especially in the context of it being a pretty large insured loss number,” she said in a video interview. “It was $127 billion in insured losses but interestingly for the reinsurance sector and the ILS sector they really did not get much of that loss. A lot of it was retained by insurers. So it was an excellent year for ILS and reinsurance.
