RE/INSURANCE-LINKED ASSETS ARE DISTINCTIVE
Re/insurance-linked assets are financial innovations at the intersection of the insurance industry and the capital markets. While the natural catastrophe subsector has existed for nearly 20 years, the bulk of the sector is still a rapidly growing, under-invested asset class that presents attractive opportunities for investment to those with expertise in the sector. Re/insurance-linked assets are distinguished by low correlation to the financial markets and most other asset classes.
We invest in reinsurance and insurance-linked assets across all lines of business and all instruments to optimize relative value, as well as mezzanine-level “working layer” risk. Instruments include collateralized re/insurance, catastrophe bonds, sidecar or special purpose reinsurer debt, mezzanine debt or equity, industry loss warranties, quota share arrangements, re/insurance swaps, coinsurance, weather derivatives, loans, and other related instruments.
Hudson Structured will monitor the following categories and opportunistically looking to invest in:
- Natural Catastrophe
- Other Property: Per Risk, Energy, Marine, Aviation, Crop & Weather, Political & Terror, Attritional
- Life & Health: Embedded Value, Specialty Finance, Mortality & Longevity, Short-Term Health, Long-Term Health
- Casualty & Combined: New Issue, Runoff, Tech & Cyber
- Financial: Hedge Fund Reinsurers, D&O, Surety, Bond, Mortgage & Trade Credit Insurance, Regulatory Capital Reinsurance
Re/insurance assets are a rapidly growing sector with low correlation with other asset classes.
HSCM BERMUDA APPROACH TO SOURCING
HSCM Bermuda will ensure it sees the fullest array of re/insurance linked investment opportunities by maintaining a dialogue with the major brokers and banks in the market. We expect to work with a broker or intermediary on each transaction, and to draw on the data, modeling and contract resources that they can offer.
HSCM Bermuda will also work closely with intermediaries and issuers to structure assets to provide buyers efficient protection, appropriate security and terms of coverage, customization, and efficient payment mechanisms.