Strategy

Our objective is to deliver capital appreciation, low volatility and low correlation to traditional asset classes by investing in insurance related assets, but in particular Insurance Linked Securities (ILS). Our view is that the market for investing in insurance-related risks will grow strongly over the next ten years as insurance carriers increasingly seek to outsource such risk to the capital markets in order to optimise their own balance sheet structures and returns. We believe the best way to take advantage of that development is to have a focused, pure insurance strategy with a long term investment horizon.

The investment strategy is predominately to own insurance risks, diversified by type of peril, by geography and by different securities. We will seek to achieve our investment return objectives by the use of financial leverage and by operating both in the liquid ILS market as well as the private market.

We divide our strategy into Liquid ILS and Illiquid ILS as well as into Life and Non-life. The liquid life ILS market is emerging, but is still very small. Instead, we envisage that our core strategy on the life side will be to build a portfolio of sizeable, illiquid investments that provide investors with stable return over long periods of time. The investment process in this strategy will be characterized by significant due diligence and structuring work and sizeable but infrequent transactions. However, we believe the risk adjusted returns to investors will be very attractive.

On the non-life side, we will operate both in the liquid and private market. We will build a diversified portfolio of non-correlated insurance risks as a base. We believe the liquid ILS asset class in itself provides attractive risk adjusted returns. However, we aim to add additional value through focus, in-depth analysis, attention to special situations, the use of leverage and being active in the private market.