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Insurance-Linked Strategies
Facts
Focus
Global risk pools include:
- Natural catastrophes (hurricane/storm, earthquake, flood)
- Aviation
- Marine
- Aerospace
- Oil rigs
- Energy infrastructure
- Crop failure
Geographies
- Global
- US
- Canada
- Europe
- Japan
- Australia
- New Zealand
Investment Size
Various
Investment Approach
Insurance-linked strategies (ILS) are a new asset class linked to insurance risks. ILS investments involve a role reversal between its investors and insurers. ILS investors take on the role of the insurance company, covering risks and receiving attractive premiums in return. Insurance companies take on the role of the policyholder by assigning risks to investors and paying them premiums. Credit Suisse’s ILS team can create diversified portfolios of single insurance-linked positions accessed through fixed income instruments (so called “Cat” bonds) and derivatives transactions. ILS strategies have exhibited low correlation to the financial markets and therefore may present an opportunity for diversification.