Versant Capital Management President and Chief Investment Officer Thomas Connelly is quoted in Financial Advisor Magazine’s January 2018 issue – Vol 28, No 3.
“In the first half of 2017, a record $10.15 billion worth of syndicated insurance-linked securities (ILS) were issued, according to Steve Evans, owner and editor-in-chief of Artemis.bm, a Brighton, U.K.-based news and data service focused on the securities. Overall, as of November 2017, the global ILS market was worth some $90 billion, he says.
Much of this market is made up of catastrophe (or “cat”) bonds that see investors assume the risk of certain disasters such as hurricanes, playing the role of reinsurer. Generally classified as 144(a) private-placement securities regulated by the SEC, they can be traded only by qualified investors.”
What exactly are insurance-linked security investments? The article explains this complex market.
Insurance-Linked Securities, by Ben Mattlin
Source: Mattlin, Ben, Financial Advisor Magazine, January 2, 2018