Fermat uses AIR to manage ILS

Fermat Capital Management, a specialty investment management firm and insurance-linked securities (ILS) manager, has implemented AIR’s Touchstone platform.

As one of the largest investors in catastrophe bonds, Fermat has implemented the platform to perform more detailed modelling on its catastrophe-related financial instruments, in a move that AIR said “marks the evolution of catastrophe modelling solutions for the ILS market.”

John Seo, co-founder and managing principal at Fermat, said: "We pride ourselves on being the first investment management company to use a detailed policy-level modelling solution from AIR to better manage our portfolio of insurance-linked securities (ILS).

“Through Touchstone, our access to granular, detailed policy-level exposures will be analyzed to provide a richer, more robust set of detailed catastrophe risk insight. Further, Touchstone will seamlessly integrate with our own proprietary CatAPM price model for use in continuous-time trading and portfolio optimization of ILS."

Rob Newbold, senior vice president at AIR Worldwide, added: "Touchstone offers a suite of tools for asset managers like Fermat to truly understand and own the risk, while providing the flexibility, transparency, and performance needed to manage catastrophe risk in the current business environment.

“As many asset managers find attractive opportunities in the broader space that give them access to detailed exposure data, Touchstone allows them to perform detailed loss analysis of that exposure. They can better understand and interact with global exposure data from a high-level overview all the way down to the street level, and with dramatic performance improvements over previous catastrophe modelling solutions."