Swiss Re Insurance-Linked Fund Management

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CATCo expect fund will deliver a net return of 20%+ in 2012


CATCo Investment Management, the specialist Bermuda based reinsurance-linked investment business who manage around $2 billion of retrocessional reinsurance portfolios for their clients, have said today that they expect their fund, the CATCo Reinsurance Opportunities Fund, to deliver a net return in excess of 20% this year. The forecast was caveated with the statement that achieving 20%+ would only be possible if there are no major catastrophe events over the rest of 2012.

That is a stunning return for CATCo’s investors and once again drives home the reason reinsurance and insurance linked investment strategies are so popular right now. Compare that to other investment assets and strategies and it is hard to think of any managed fund which could hope to achieve a 20% return in the current economic climate.

Anthony Taylor, Chairman of CATCo, said; “Following 2011 being one of the worst years of all time for the insurance industry the fund currently expects to deliver a net return in excess of 20% in the current year, subject to no losses during 2012.”

CATCo hope to achieve similarly strong returns in the future. With their strategy of writing top-layers of reinsurance and retro programs they have access to high return business which can deliver excellent returns to their investors. With their highly diversified, pillars of risk approach, they hope to be diversified enough to deliver positive returns even under extreme catastrophe loss situations.

Anthony Taylor commented; “Looking forward we believe the fund will maintain its well diversified portfolio of risk at current levels with the expectation for similar or even slightly better returns in 2013.”

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