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ILS Capital Management Ltd, the Bermudian-based manager of insurance-linked securities investments, delivered a double-digit return to a major investor last year.
Bob Jacksha, chief investment officer of the New Mexico Educational Retirement Board, a $12.9 billion pension fund, said their investment with the Bermudian fund manager produced a return of 11.4 per cent in 2018.
ILS Capital Management was founded by Don Kramer, the reinsurance veteran who is the company’s chairman.
Speaking to the Chief Investment Officer website, Mr Jacksha explained why he had included reinsurance exposure to his fund’s portfolio. Last year, he implemented a new category called “Other Diversifying Strategies” of which reinsurance was part.
“First of all, it’s not correlated with the stock market. It’s more correlated with natural disasters, hurricanes, what have you,” Mr Jacksha said. “In addition, it’s correlated with where you are geographically.”
The returns were achieved in a year in which the reinsurance industry paid out out claims on hurricanes and devastating California wildfires.
On its website, ILS Capital Management states: “We combine traditional portfolio management techniques with disciplined security selection and risk management to create long-term value for investors.”
The company has offices in the Swan Building on Victoria Street, Hamilton, and also in London and Greenwich, Connecticut.