Total return reinsurer

Total return reinsurers, or the total return reinsurance business model, sees a new breed of company established targeting to generate a return from both the underwriting and investment side of the business.

In reality this is the hedge fund reinsurer model dialed back a little, seeking to generate a higher return on the underwriting side to complement a higher investment return, with the idea being to outperform the reinsurance market on a total return on equity basis.

Also know as investment oriented reinsurance vehicles, this total return reinsurer group includes such players as ABR Re, Watford Re, Fidelis, Hamilton Re, Aligned Re and Alloy Re.