As natural disasters become more frequent causing significant losses, it is now an important societal issue. While economic losses are normally covered through insurance, large scale losses could overwhelm insurers and reinsurers beyond their capacity. The need to alleviate this risk developed in to what is now known as the Insurance linked securities (ILS) market, also represented by CAT bonds.
Insurance Linked Securities are playing an innovative role in the convergence of reinsurance and capital markets, with the following benefits.
Insurance linked securities provide societal benefits in lower re/insurance rates and wider coverage (Disaster finance, and closure of coverage gap etc).
From an investor perspective, low correlation to traditional equity and bonds would provide diversification benefits to the portfolio. Insusceptibility to usual economic cycle and rate environment makes it an attractive source of return.
Eastpoint, based in Bermuda, which is one of the main places for global reinsurance market, supports clients by providing with investment services for a stable, mid to long term asset growth, through its asset management and consulting business specializing in insurance linked securities.
Description of Business: Investment Management (Bermuda Registration No. 46744)
Asuka Asset Management was established as an independent investment advisory company based in Japan that offers global investment businesses. Asuka was formerly the Japanese subsidiary of Tudor Investment Corporation, a major American hedge fund. It changed the name to Asuka Asset Management in July 2002 as a result of a management buyout.