Return to Perspectives
Client Alerts
Nov. 08, 2017

Interval Alts and Insurance-Linked Securities

We are seeing Interval Alts (registered investment funds featuring hedge fund-like liquidity) being used for dedicated insurance-linked securities (ILS) strategies. ILS, such as catastrophe, or "cat," bonds, provide sponsoring insurance and reinsurance companies with contingent funds to hedge the risk of specified insurable events, e.g., hurricanes, wildfires and earthquakes. With the recent natural catastrophes this summer and fall, insurer demand for loss protection is expected to rise, which could improve pricing for providers of risk protection, such as reinsurers or ILS investors. Interval Alt funds employing ILS strategies tend to be non-correlated with other financial products and offer their investors additional liquidity and execution benefits, as illustrated below. 

Insurance Linked Securities Infographic

Media Attachments

Authors and Editors

You may also be interested in

  • Funds Talk
    Dec. 01, 2017
    Funds Talk: December 2017

    Topics covered in this issue include: Tax Reform, Blockchain, Asset Management and Insurance Regulation Guidance, Cayman Islands, Interval Alts, Insurance-Linked Securities, LIBOR

    Read More
  • Client Alerts
    Nov. 08, 2017
    Interval Alts and Insurance-Linked Securities
    Read More

Related Practices

We use cookies on this website to optimize user experience and site functionality and to give you the best possible experience. We do so with your approval. The choice is up to you. Learn more.