Analysis: Investors Turning to Reinsurance for Juiced Returns

Reuters – May 2012

(Reuters) – Investors globally, from hedge funds to retirement systems, are looking to an obscure corner of the insurance industry to boost returns and avoid some of the swings that have plagued stock and bond markets in recent years.

Their attention is focused on the reinsurance sector, which covers insurance companies looking to unload risk, attracted by its market-beating returns and low exposure to faltering economic growth in the United States and Europe.

Big-name hedge fund managers like Dan Loeb, Steve Cohen and John Paulson are putting money directly into the market by setting up reinsurance companies just in the last six or so months, taking on risks with their own capital in a bid to juice their returns.

Full article is available here:  Reuters