Trading Risk June 2019

A paper by academics at Hamburg University compared the results of the Swiss Re global cat bond indices against indices from various other sectors.

Swiss Re has increased the capacity of its Sector Re sidecar to $670mn, despite a tightening of the wider retro market.

The Pennsylvania Public School Employees’ Retirement System (PSERS) fund nearly doubled its ILS investments as it reloaded after the 2017 catastrophe losses, taking its holdings in the sector to $803mn at 30 June 2018.

Swiss funds active in ILS recorded stable or slightly increased allocations after 2017’s losses.

Ultimately, with advantages and challenges in any ownership situation, the parentage of an ILS platform is not going to be the determining factor in its success.