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 ils@nullrenre.com for further information


Figure 1

Figure 1