Background on ILWs

Natural Event Risk Is a Strong Fundamental Diversifier

Natural Event Risk Is a Strong Fundamental Diversifier

560 315 Cartesian Re

By Peter DiFiore, Cedric Drui, and Charles Mixon, Cartesian Re Managing Directors

Insurance-linked securities focused on natural catastrophe risk exposure offer attractive returns that are uncorrelated with traditional investment asset classes. Within the ILS asset class, ILWs offer customizable, highly transparent natural event-linked returns with inherent structural protection from potential counterparty and ancillary risks. ILWs presently provide attractive risk-return attributes in addition to powerful diversification benefits within a wider portfolio.

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