efficient capital

We often discuss the efficiency of reinsurance capital sourced from capital markets, third-party or alternative sources, as well as its lower-cost nature which can allow it to have a competitive edge over the traditional reinsurance business model.

The preferred terminology used at ILS investment manager Nephila Capital to describe the third-party capital that has entered the reinsurance market, as institutional investors appreciation for catastrophe risk as an asset class has grown, is not ‘alternative capital’, rather it is ‘efficient capital’.