Insurance Linked Securities
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What are Insurance-Linked Securities?
Insurance-Linked Securities (ILS) are located at the crossroads of the capital and insurance markets. Their return depends on the occurrence of a specific insurance event, which can be either related to non-life risks such as catastrophe bonds or life risk, for example extreme mortality bonds.
Why consider Insurance-Linked Securities?
ILS are available both in cash and synthetic format and aim to offer a powerful tool of risk diversification with reduced dependence on economic factors and a generally low correlation with other assets.
Our approach to Insurance-Linked Securities
Informed by our long history of pricing reinsurance contracts, we take a three pillar approach to investing in insurance-linked securities. The first pillar is a qualitative analysis of the instrument, the second involves quantitative analysis and risk modelling and the third comprises sophisticated pricing models.