A New York Times Dealbook article addresses an issue that has been growing for years – hedge funds investing in offshore reinsurers.
The float of insurance companies has long been valued by investors like Warren Buffet, it provides stable and cheap cash to invest. However, there is growing concern about hedge funds using the float of reinsurance companies. Unlike a domestic insurance company, offshore reinsurers are more volatile, less regulated and more important to the financial system.
Calculated Risk Advisors works with clients to address issues of carrier solvency and provides financial analysis of prospective insureds.