Insurance Linked Securities (ILS)

In bringing capital markets to the insurance world, ILS help economies to increase risk resilience and to create investment opportunities with the rare quality of being historically uncorrelated to most other assets classes.

World-class origination capability

In its entirety the ILS universe offers a rich seam of long-term, sustainable and inflation-shielded returns.

Best-in-class risk-managed returns

We capture the full spectrum of risk-return and liquidity profiles available.

Market-leading tools and approach

We offer best-in-class risk-managed returns over time with high resilience to the effects of climate change.

How ILS works

ILS are investments that enable the transfer of insurance risk from the (re)insurance industry to capital market investors in return for a risk transfer premium.

ILS take various forms, including public, tradeable instruments (cat bonds) and private, non-tradable instruments (preference shares and notes) issued by special purpose vehicles. We are active across the full spectrum of instrument types and risk exposures.

A rich seam of long-term, sustainable, inflation-shielded returns

We have the world-class origination capability to capture the full spectrum of risk-return and liquidity profiles available. We offer best-in-class risk-managed returns over time by integrating assets with remote attachment probabilities and high resilience to the effects of climate change. As important, our transparent communication approach has helped to ensure that we match the expectations of our clients. Floating rate yields shield returns against the effects of changing interest rates.

Standing apart from reinsurers

Critically, our team is independent from any reinsurance entity. That means we’re not obliged to invest in or alongside a parent’s risk portfolio and underwriting activities.

Instead we assess individual opportunities on their own merits, and our decision making is driven by a combination of the risk-return characteristics of each deal and its contribution to the portfolio.

Insurance Linked Securities

Helping communities when hit by volcanoes

Humanitarian ILS

Supporting the launch of the first-ever pure volcanic risk catastrophe bond, benefiting the Danish Red Cross. The bond is triggered by factors linked to the likely damage caused by the eruption, and covers ten volcanoes in developing countries.

Disclaimer: The company shown is for illustrative purposes only and not a recommendation to buy or sell.

  • Investment date

    March 2021

  • Sector

    Disaster relief

  • Location

    Mexcio, Colombia, Ecuador, Chile, Guatemala, Cameroon, Indonesia

Watch our video to find out more about ILS

Learn more about our pioneering ILS team and how we play a key role in delivering uncorrelated returns to investment portfolios in our video.