The ILS market in the first half of 2022

Capital markets generally faced a difficult time during the first half of 2022. Insurance Linked Securities performed reasonably well in this challenging environment and proved their merits as a diversifying asset class. However, an expectation by investors of higher return for the risk affected cat bond yields and pricing as well.

The attached market comment sheds additional light on the developments in the reinsurance and ILS markets and discusses the increased earning potential that this asset class offers today for investors.