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This is the first in a series of articles featuring the thoughts of leading figures in insurance-linked securities (ILS) and reinsurance on the market as we move into 2015. The first piece features Diego Wauters, CEO of ILS specialists Coriolis Capital Limited.

Insurance and reinsurance firm Lancashire Group Holdings anticipates receiving an additional $4m of profit commission from its third-party capital and reinsurance-linked asset management division Kinesis over future quarters, as the reserves we discussed earlier are released.

Prudent reserving for potential losses that have not yet fully crystalised has reduced the amount of profit commission that insurance and reinsurance firm Lancashire Group Holdings received from its third-party capital and reinsurance-linked asset management division Kinesis in the first-quarter.

The secondary market for trading in catastrophe bonds and ILS proved to be a “valuable source of liquidity” in 2014, as investors sought to free up capital to invest in the year’s record new issuance, according to Aon Benfield Securities.

The greater range of options available to cedants from insurance-linked securities (ILS) and catastrophe bonds, along with increased sophistication of solutions, ensures a positive outlook for the ILS market in 2015, according to Aon Benfield Securities.

Continued investor appetite for catastrophe bonds and insurance-linked securities (ILS), alongside growing confidence in their use as an alternative to reinsurance, could see the cat bond market hitting $9 billion of issuance in 2015, according to WCMA.