Insurance Linked Securities
AXA Structured Finance Insurance Linked Securities team manages portfolios of natural catastrophe risks as well as life risks such as extreme mortality.
Asset Class
Located at the crossroads of the capital and insurance markets, Insurance Linked Securities (ILS) are securities whose return depends on the occurrence of a specific insurance event, which can be either related to non-life (e.g. catastrophe bonds) or life risk and are available both in cash and synthetic format. ILS are powerful asset diversifying tools given that their returns do not depend on economic factors as is the case for most other asset classes, but rather on the occurrence of events such as earthquakes or hurricanes.
By nature, the asset class has experienced a low volatility and a low correlation with any other financial assets.
Team
The ILS team is made up of staff members with strong actuarial and financial backgrounds and benefits from a dual capital market and insurance market culture. The team's investment process is based on an extensive analysis of the structure, model and pricing of each asset and portfolio. Before making any investment, the team makes sure it has a thorough understanding of the transaction. Selected assets are then managed within portfolios featuring an optimal risk-return profile, with a strong focus on risk management. The team also benefits from the support of the AXA Group in terms of modelling and research capacities.
This support from the AXA Group acting as an advisor enables us to get access to a team of scientists (e.g. climatologists, seismologists) and actuaries specialized in risk modelling and management. Through this partnership, the ILS team has access to the three main risk modelling software (AIR, EQECAT and RMS) as well as to internal models. This unique partnership gives the ILS team a true differentiating advantage vis-à-vis competition translating in very strong performance.
Products
The ILS Team has the capacity to service the needs of investors looking for investments in ILS through various formats. Depending on their objectives, investors can select amongst products which are leveraged or not, as well as mark-to-market or cash flow driven. Investors wishing to allocate substantial amounts to ILS or get further information on our existing open ended fund GAIA can consult with the ILS Team for setting up dedicated investment mandates.
Team Leader
Christophe.fritsch@axa-im.com
+ 33 1 44 45 73 44
