WAYNE, PA — (Marketwire) — 05/29/12 — , L.P., an investment management firm specializing in , today announced that (“NEIL”), one of Anchor–s initial institutional investors, has materially increased its investment portfolio allocation to Insurance-Linked Securities, specifically .
Responding to a query as to why Nuclear Electric Insurance Ltd. had recently increased its investment in catastrophe bonds, CIO, Robert MacGovern, offered the following comment:
“Last year, Mother Nature–s ravages made for a difficult year for investors in catastrophe bonds. The market response has been to require bonds presenting comparable risk to offer higher, more attractive, yields. We find that fact, coupled with the diversification benefit derived from the generally low correlation exhibited between cat bond and corporate credit issues, to be a compelling case for considering a new, or increased, allocation to this asset class.”
Commenting on the expanded mandate, Pete Vloedman, Chief Executive Officer of Anchor Risk Advisors said, “Insurance-Linked Securities have been proven to lower the volatility of investment portfolios by adding insurance event risk that is uncorrelated to the drivers of traditional equity and debt performance. The instability in today–s credit markets makes instruments like catastrophe bonds valuable diversifiers to a fixed income portfolio.”
Anchor Risk Advisors, L.P. (“Anchor”) is an investment management firm specializing in Insurance-Linked Securities. Anchor–s investment strategies seek to capture returns from the catastrophe insurance risk market that are minimally correlated to those of traditional asset classes. Further information is available at .
Nuclear Electric Insurance Limited (“NEIL”), a mutual insurance company, insures electric utilities for damages to insured sites, decontamination expenses incurred at such sites arising from nuclear contamination, other risks of direct physical loss at such sites, certain premature decommissioning costs, and the costs associated with certain long-term interruptions of electricity supply.
Anchor Risk Advisors:
Holly Singer
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