Institutional investors' share of insurance-linked securities capacity fell to 32% for the year ended June 30, from 41% a year ago, according to Aon Benefield's latest annual ILS report. The decrease comes despite what Aon called "an increase in absolute participation in the catastrophe bond market."
Investors increasing their capacity the most were reinsurers (4 percentage points), catastrophe funds (3 percentage points) and hedge funds (3 percentage points).
Aon said an estimated $5 billion to $6 billion of new capital entered the ILS market in the 12 months through June 30.
