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Potential for further ILS expansion: Report

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A report by Swiss Re Ltd. has said that despite ongoing pressure from a softening market, both traditional and alternative reinsurance capital recorded growth during the first half of the year with potential for continued expansion of insurance-linked securities, Artemis.bm reports. "The rapid expansion of alternative capital which caused a sudden supply/demand imbalance in property catastrophe reinsurance in 2013-2014 has abated, as average returns for several alternative capital business models have fallen below their cost of capital," said Swiss Re.

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