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17th of May 2012

ILS annual returns soar  

Matthew Broomfield 24/08/2010

Investment return of insurance linked securities (ILS) has risen by 10 per cent in the last year, says a new review by Aon Benfield.
 
ILS products provided a total investment return of 12.85 per cent for the year ending June 30, 2010 – up from 2.94 per cent the previous year, according to Aon Benfield’s ILS Indices, its new benchmarking tool. These results are primarily attributed to mark-to-market gains across all perils.

20 new transactions totaling $4.6bn were brought to market in the last year, compared with $1.7bn across 11 transactions the year before, says Aon Benfield’s ILS Review 2010 – Market Momentum.

“Over the past year, the insurance-linked securities market has once again demonstrated its importance as a source of risk transfer capacity,” said Paul Schultz (pictured), president of Aon Benfield Securities. “The market has grown and evolved in response to a changing global economic environment, maintaining its relevance to both sponsors and investors.”

Tags: Aon Benfield Securities, ILS

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