Catastrophe bonds make a “very strong investment,” says Phil Cook, chief executive officer of Omega Insurance Holdings.
That’s according to a report in our sister publication, Canadian Insurance Top Broker.
“Hedge funds, pension funds, endowments, trusts, and now reinsurers are certainly getting on board with the whole cat bond scenario, either as an investor, provider or a manager,” he says. “There’s also an increased number of high net worth individuals going into those investments as well.”
Cook added that he’s seen rates of return as high as 17.5 to 18%.
“You can imagine that most of those cat bonds have been extremely profitable,” he adds. “Some of them had absolutely no losses.”
Cook also made his predictions on the key trends that will affect the insurance industry in 2014 and beyond.
Read the whole story on Canadian Insurance Top Broker’s . And follow the publication on Twitter @CITopBroker.
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