Reinsurers in Europe increasingly using alternative capital: Report

A.M. Best Co. Inc.said in a report that European reinsurers are increasingly using insurance-linked securities and alternative capital as low interest rate environment continues in the global reinsurance space, reported Artemis.bm.

"There has been an active use of alternative capital markets for balance sheet protection through Industry Loss Warranties, risk swap and cat bonds," the report said.

"Some of the larger reinsurers are using backing from alternative capital providers for themselves, or to offer solutions for their clients," added A.M. Best.

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