Insurance-linked investments are offered by insurance and reinsurance companies in order to transfer pure insurance risks to the capital markets. These instruments offer investors an attractive potential return with a low correlation to the financial markets.
LGT has invested in insurance-linked strategies for over ten years. As one of the world's largest investment managers for insurance-linked investments, LGT Capital Partners offers public investment funds and individual mandates for institutional clients.
Investors benefit from insurance-linked investments through:
Insurance-linked strategies as an asset class
Insurance and reinsurance companies are specialized in taking on event-driven risks from individuals and corporations. In the mid-1990s, the available capital in the insurance and reinsurance industry was no longer sufficient to cover extreme loss scenarios caused by natural disasters in the largest risk regions. As a result, the industry was forced to explore new ways to adequately hedge peak risks and raise capital. This led to the development of the market for insurance-linked investment vehicles, which enable insurance and reinsurance companies to transfer risks to capital markets.
For more information on investment solutions, please contact the specialists at LGT Capital Partners.