It takes time, expertise and experience to craft something unique. For two decades, our team has focused on creating investment opportunities that match our capabilities in risk selection and portfolio management with the right capital. The result has been consistency and endurance through market cycles, shaping a unique franchise for our clients and investors.
Global Head - Capital Partners
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?
RenaissanceRe manages capital invested in the reinsurance and Insurance Linked Securities asset class. We offer multiple investment opportunities across a broad risk spectrum.