Aspen Insurance Holdings has announced that it is taking it’s first step into the insurance-linked security fund management marketplace with an investment of $25m in a newly formed ILS fund. They have partnered with and invested in a newly formed specialised investment fund, Cartesian Iris 2009A which is focused on insurance linked securities and reinsurance. Aspen will as well as investing be providing advice on risk selection, pricing and portfolio design to the fund.
The new fund is sponsored and managed by affiliates of Cartesian Capital Group LLC (yes, the same people who launched a reinsurer focusing on the ILW market yesterday). Cartesian certainly seem to have a positive view of the ability of the capital markets to provide much needed capital to the risk transfer markets and also for their investment in those markets to be profitable.
Read the press release from Aspen here.