Mon, Dec 18, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Is this the time to consider Reinsurance for a diversified hedge fund portfolio?

Wednesday, October 04, 2017

Matthias Knab, Opalesque:

From Donald A. Steinbrugge, CFA:

Most institutional investors understand the uncorrelated, diversification benefits of property catastrophe reinsurance. Many have been waiting on the sidelines for a large event to happen that would drive up pricing before allocating to the strategy. The two big questions these investors ask are, "Is pricing going up?" and "Has the probability of hurricanes increased?"

Will pricing on property catastrophe reinsurance increase?

2017 has the potential to be the costliest year for the reinsurance industry on record, even worse than 2005 when the reinsurance industry was impacted by hurricane Katrina, Rita and Wilma. Applied Insurance Research (AIR) Worldwide estimates that losses from Hurricane Maria could add between $40 billion and $85 billion to the insurance industry losses from recent catastrophes. When added to the devastation of Hurricane Harvey and Irma along with recent earthquakes in Mexico, losses could be as high as $165 billion based on AIR estimates of all events.

Insurance companies typically assume the initial losses from major events and purchase reinsurance to cover losses above a threshold. The most recent events will likely have a disproportionately large impact on reinsurance, compared to others in the insurance industry, as they trigger aggregate losses which exceed those thresholds

Prices for reinsurance are impacted by supply and dema......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  3. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  4. ...And Finally - The ongoing gun saga in the U.S.[more]

    From Newsoftheweird.com: As elder members of the First United Methodist Church in Tellico Plains, Tennessee, gathered on Nov. 16 to discuss the recent church shooting in Sutherland Springs, Texas, one of those present asked if anyone had brought a gun to church. One man spoke up and said he c

  5. Opalesque Exclusive: Credit Suisse Asset Management's NEXT Investors leads $6M Series A round for LUX Technology and Services[more]

    Bailey McCann, Opalesque New York: Credit Suisse Asset Management's NEXT Investors has led a $6 million Series A funding round for LUX Technology and Services, a business and technology solutions provider for the alternative assets industry. The investment will be used to fuel growth of Trans