Why Invest in ILS?
What are Insurance-Linked Securities (“ILS”)?
- ILS are tradable debt instruments, the value of which is dependent on the occurrence of specified catastrophic events (i.e. a hurricane or an earthquake)
- The most common form of ILS product is a catastrophe bond (“cat bond”)
- Cat bonds are typically used as an alternative to buying a traditional reinsurance product
- Other forms of ILS products include sidecars, collateralized reinsurance and industry loss warranties
Why should I invest?
- ILS have low correlation with the broader financial markets and offer a high degree of diversification to an asset portfolio
- Cat bonds in particular have historically generated higher returns and lower volatility relative to other asset classes
- ILS are floating rate instruments and are not exposed to interest rate risk
Can I invest with RenaissanceRe?
- Yes, RenaissanceRe manages over $6B of capital invested in the reinsurance and Insurance Linked Securities asset class
- We offer multiple investment opportunities across a broad risk spectrum
- Contact firstname.lastname@example.org for further information