RE/INSURANCE-LINKED ASSETS ARE DISTINCTIVE
Re/insurance-linked assets are financial innovations at the intersection of the insurance industry and capital markets. While the natural catastrophe subsector has existed for nearly 20 years, the bulk of this sector is still a rapidly growing, under-invested asset class that presents attractive opportunities for investment for those with expertise in the sector. Re/insurance-linked assets are distinguished by low correlation to the financial markets and most other asset classes.
Our team has deep experience in structuring bespoke transactions to maximize relative value and is active in all facets of the re/insurance industry, from emerging risks like cyber to the distribution and services ecosystems that reinsurers rely on. HSCM Bermuda invests across the re/insurance landscape including – but not limited to – the following sectors:
- Natural Catastrophe: ETFs, Homeowners Insurance Company Debt, Homeowners Insurance Startups, Cat Reinsurance Startups
- Other Property: Per Risk, Energy, Marine, Aviation, Crop & Weather, Political & Terror, Attritional Risks, Lloyds/London
- Life & Health: XXX & AXXX Securitization, Medical Cost Ratio, Premium Finance, Life Settlements, Biometric and non-biometric run-off
- Casualty & Combined: New Issue, Run-off, Auto Securitization, Tech & Cyber
- Distribution & Services: Claims Services, Commission Factoring, Agency Roll-Ups and Acquisitions
- Financial: D&O, Surety, Bond, Mortgage & Trade Credit Insurance, Regulatory Capital Reinsurance, Title Insurance
HSCM Bermuda invests across the entire re/insurance capital structure, employing a diverse array of instruments including:
- Catastrophe Bonds
- Sidecar Preferred & Equity
- Embedded Value Securitization
- Extreme Mortality Bonds
- Attritional Health Bonds
- Specialty Lending
- Syndicated Collateralized Reinsurance
- Hedge Fund Reinsurer Preferred
- Weather Derivatives
- Event Driven Investments
- Surplus Notes & Preferreds
Re/insurance assets are a rapidly growing sector with low correlation with other asset classes.
HSCM BERMUDA APPROACH TO SOURCING
HSCM Bermuda will ensure it sees the fullest array of re/insurance linked investment opportunities by sourcing from three different channels.
- Proprietary: With 260+ years of combined experience in the Reinsurance sector, HSCM Bermuda has strong relationships with issuers of risk and is active in identifying gaps in the market to structure and execute investments which are not circulated to the broader market.
- Non-proprietary: HSCM Bermuda maintains a dialogue with the major brokers and banks in the market. We expect to work with a broker or intermediary on many transactions, and to draw on the data, modeling and contract resources that they can offer.
- Platform: HSCM Bermuda seeks investment opportunities that will allow us to use the investment as a source or vehicle for future investments.