It's a bright forecast for 2012 as the annual Trading Risk Market Survey showed the convergence industry expects to continue to benefit from new investor inflows, rising pressure on property catastrophe rates and regulatory change.
The industry's strong fundraising prospects are a key reason for optimism as investors continue to seek sources of diversifying risk amid mainstream market turbulence.
This comes after some of the largest fund managers in the sector rapidly built up their asset base in 2011.
Indeed, one respondent questioned whether the experience of 2011 had influenced Trading Risk to become over-enthusiastic in labelling the growth rates used in our questions.
It's all relative, but we agree that growth of up to 25 percent isn't to be sniffed at!
The Trading Risk Market Survey shows the fundraising outlook to be both more bullish and more modest than in 2010, with the vast majority of respondents this year forecasting small to fair growth.
Last year, there were more outliers at both ends of the scale, with a minority of 14 percent expecting the convergence market to expand its capital base by more than 50 percent and 10 percent forecasting it to remain static.
Meanwhile, the industry's top prescription to maintain growth is to keep a constant supply of new deals coming through.
It's not surprising that the focus is on ILS supply this year, given that investors were forced to wait in vain for new issuance mid-year after the Japanese earthquake threw pre-hurricane season sales off course.
Last year, respondents were more evenly split between the supply and demand corners, with 29 percent rating a broadening of the investor base as the top factor that would stimulate growth.
Now, demand concerns are more of a minority issue, with only 17 percent ranking it the most likely force to drive growth.
But as one respondent noted, the true test of what it will take to grow the market lies in keeping its rapid evolution under control.
"Getting investors comfortable with what managers are doing is key!" the respondent stated.
The survey of Trading Risk subscribers was conducted from 5 to 20 December 2011. Some 48 respondents completed the survey and we thank you for your participation.
Please click here to downloaded the 2012 Trading Risk Market Survey.