Fund investors: all eyes on reinsurance

While hedge funds, pension funds, sovereign wealth funds, private equity firms and the like have shown an attraction to the insurance market for a while, there has been a recent spike in the number of hedge fund-backed reinsurers. Such reinsurers will typically be sponsored by an asset manager who will manage the investments and have access to a free “float” (ie, the premium income) which can then be invested in accordance with the asset manager’s investment strategy.