No significant pick-up in alternative capital entry yet: Swiss Re CFO Dacey

So far, global reinsurance firm Swiss Re, is not seeing a significant pick-up in inflows to alternative capital and insurance-linked securities (ILS) structures, but its CFO John Dacey said today that “slight growth” is possible.

It’s important to note that Dacey was speaking to the chance of more capital flowing into reinsurance, attracted by the much higher rates available and returns being delivered by companies such as Swiss Re.

Dacey explained during a media call about Swiss Re’s results this morning, that so far no big inflow of new funding from alternative capital investors is being seen in reinsurance.

He said that, “At this moment, there’s not been a big flow of outside capital into the industry in any meaningful way.”

Dacey went on to explain that, “We are active participants in what’s referred to sometimes as the alternative capital segment of the market.”

Adding, “This has been a space where the the amount of capital deployed has plateaued now for about almost three years, partly because people had to endure significant losses over the last five years and partly because of other opportunities for investments.”

But he seemed a little more optimistic about the longer-term outlook for inflows of capital to alternative reinsurance capital and ILS structures.

Dacey commented, “I think, at some point in time, there may be a slight growth. But we haven’t seen that pick up in any meaningful way, in the the space that we’re active in.”

Of course, Swiss Re has expanded its own alternative capital platform’s assets under management to $4.3 billion as of the middle of this year, $3 billion of which is from third-party investors.