Business Wire – A.M. Best Co. has released a briefing on the renewed interest of hedge funds in the non-life reinsurance industry.
Hedge funds are showing renewed interest in the reinsurance business as they seek to diversify their investment strategies and deploy accumulated capital. The catastrophic losses experienced by the reinsurance industry in 2011 have piqued the hedge funds’ interest. Given the importance of Best Credit Ratings in the reinsurance community, some of these hedge fund backed reinsurers are rated, and others have inquired about initial ratings. A.M. Best’s analysis employs standard rating criteria with special attention to the risks of both the investment strategies and business/underwriting profiles of these companies.
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