Insurance bonds gain traction
Australian institutional investors have shown interest in insurance-linked securities, with AMP having announced a US$35 million mandate last month, according to insurance bond specialist Nephila Capital.
Nephila, which is part-owned by Man Investments, argues that while most investments struggled in last year’s difficult market conditions, insurance linked securities yielded positive returns that clearly demonstrated their independence from broader financial markets.
Announcing today that Nephila had raised about US$800 million in the second quarter for its catastrophe reinsurance funds, the company’s co-founder, Greg Hagood, said the manager had been awarded mandates in various jurisdictions around the world, with the majority of capital coming from pension funds, hedge funds and funds of funds.
AUTHOR
Mike Taylor
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
