ILS Q4 2023 Quarterly Update

Insurers and reinsurers leveraged alternative capital in 2023 more than any year in the history of the (re)insurance market. In 2023, alternative capital crossed the $100 billion threshold, representing an increase of more than 7% from the year prior. As property reinsurance pricing exceeded levels not seen in several years, insurers and reinsurers were grateful for the opportunity to diversify their purchase with Insurance-Linked Securities. ILS investors benefited from the highest risk-adjusted margins in over a decade, offering well-priced capacity to cedents during a year in which the North Atlantic hurricane season resulted in muted losses, further enhancing returns. Elevated riskadjusted margins along with strong collateral returns have provided the best performing years in the market’s 20-plus year history.