Hedgies Expand Reach In Reinsurance

Friedlander, Josh
May 2005
Investment Dealers' Digest;5/30/2005, Vol. 71 Issue 21, p8
Trade Publication
The article reports that hedge funds camped out in the reinsurance market in 2004, expanding their reach beyond investing in catastrophe bonds to the point that they have now become actual competitors of traditional reinsures in some risk areas. Prior to 2004, hedge fund involvement in reinsurance was limited largely to purchases of cat bonds issued to lay off natural disaster risks taken by insurance and reinsurance companies. According to the sources, hedge funds have taken their involvement a step further, investing more than $2 billion in a small number of significant reinsurance deals in 2004.


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