There is a feeling from investors that supporting well known and established re/insurance franchises benefitting from significant rate improvements makes very good sense in a post-COVID environment, according to John Butler, Managing Director, Cohen & Company.
Day three of Prospectus 2021 – a new annual re/insurance and insurance-linked securities (ILS) conference, included a panel discussion titled Capital – Constraints, fundraising successes and challenges.
During the session, Butler underlined a view that investors recognise the overall robust nature of the insurance market, its long-term nature, and how it is a well regulated but transparent industry.
He added that these qualities could go a long way in defining the extent to which certain businesses will be affected by COVID-related losses.
“Our investors certainly have shown a strong interest in bringing capital in to assist corporations moving forward through the ongoing insurance industry and also through what is now a very strongly growing legacy market,” Butler noted.
“We see very attractive opportunities for investment moving forward, and I think our investors now feel that there is sufficient clarity to understand how this has been affected by the current situation and what the changes will be moving forward.”
He went on to underline how interactions with public investors have demonstrated a sensitivity to COVID and how it’s affecting the interaction between the re/insurance market as a whole and its ultimate consumers.
“I think public market investors are less attracted to the more traditional balance sheets and more drawn towards the concept of highly performing niche areas expected to grow rapidly through the coming cycle.
“I think the acceleration of investment into those types of franchises could be a theme that we see running through the next years,” Butler concluded.
To watch every session on-demand please visit the Prospectus 2021 website.
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