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.
